Some coal mines in China's major producing areas began to raise selling prices after being silent for two weeks, encouraged by recent heavy snows that curbed production and lifted coal consumption, traders said.

 

Six of the 90 thermal coal mines surveyed by Sxcoal on December 14 raised prices by averagely 17.2 yuan/t.

 

Demand from power and heat generators has been robust amid sharp drop of temperatures, supporting steady shipments from mines. Meanwhile, wholesalers at railway stations stepped up procurements after the top mining group lifted its buying prices for coal from other mines.

 

The overall market saw prices largely holding steady. Miners adjusted prices independently based on their own sales conditions. Sxcoal's survey found 79 mines held prices steady while five cut theirs by an average 15 yuan/t.

 

Snowy weather curbed long-haul trucking in major production areas. Large mining bases including Yulin, Datong and Ordos experienced heavy snows. Affected by this, the roads among these areas were frozen and couldn't melt easily, resulting in shutdown of several major high-speed highways. Some coal mines in these regions therefore suspended sales.

 

Prices were mixed in Ordos, Inner Mongolia. Some mines cut prices by 10-20 yuan/t to elicit demand that had been subdued by the bad weather. Some others, however, reported sound outbound shipments thanks to long-term contracts, raising prices by 5-10 yuan/t.

 

A local miner pegged his selling price at 610 yuan/t for 5,000 Kcal/kg NAR coal with 0.45% sulfur, a 10 yuan/t rise from a day earlier. 

 

Prices in Shanxi's Yulin region were generally stable. Major mines prioritized fulfillment of long-term contracts. Snow weighed on sales at smaller mines, though their stockpiles remained relatively low.

 

In northern Shanxi, prices saw moderate gains as inquiries from portside buyers improved, although the snowfall put some mines' sales on hold. Local sources said some 5,000 Kcal/kg NAR coal with 0.6% sulfur was offered at 610 yuan/t, mine-mouth without VAT, and 5,500 Kcal/kg NAR coal with 0.9% sulfur was at 720 yuan/t, without VAT, both unchanged from a day earlier.

 

Overall, the price trend remains unclear at major producing regions in the short term. How strong the winter weather could impact downstream demand requires further monitoring, in addition to transport interruptions from recent snow and low temperatures.

 

On December 15, Sxcoal assessed Datong 5,500 Kcal/kg NAR grade at 800 yuan/t, Ordos 5,500 kcal/kg NAR at 722 yuan/t and Yulin 5,800 kcal/kg NAR at 806 yuan/t, mine-mouth with VAT, all unchanged from a day earlier.