Posted on 10 Mar 2022
The total output of processed coking coal from the 110 wash plants under Mysteel's weekly survey was generally stable this week, rising only slightly by 2,300 tonnes/day on week to 591,600 t/d as of March 8. The slower rate of processing at sampled miner-affiliated plants was offset by higher output from independent washeries, the survey results showed.
Over the survey period of March 2-8, coal mining and processing in Southwest China's Guizhou province slowed because of an accident at a local coal mine on February 25. A total of 14 workers were underground at the time of the accident and as of Wednesday, search and rescue efforts were continuing, Mysteel Global noted.
The coal mine suspended operations immediately, and coal mines elsewhere across Guizhou were also ordered to conduct safety checks, resulting in the overall reduction in their coal output, according to Mysteel's survey.
On the other hand, Mysteel observed higher output among independent processors at the sampled plants, encouraged by firming sales during the period. "The prevailing bullish market sentiment lifted production enthusiasm among the domestic steelmakers and coking plants, leading to their buoyant demand for coking coal to maintain stable production," a Shanghai-based market watcher said.
Moreover, the materialization of another Yuan 200/tonne ($31.7/t) increment in domestic coke prices won by coking plants on Tuesday - the third increase they have won this month - has also encouraged domestic wash plants to raise their coking coal prices, Mysteel Global learned.
As a result, as of March 8, Mysteel's national composite coking coal price had edged up for the second straight week by another Yuan 130/t on week to Yuan 2,415.1/t and including the 13% VAT, or hitting a more than three-month high, according to the database.
Source:Mysteel Global
