China's domestic anthracite market continued to rise with active trading in the week ending April 28, albeit at a slower pace.

 

The anthracite supply remained stable due to normal production at most mines. Miners reported smooth offtakes, which supported the price hikes. Traders reduced purchases towards the end of the week, resulting in slower growth in anthracite prices.

 

Restocking demand from some chemical plants provided support for the anthracite market, but their willingness to stock up waned before the May Day holiday. The momentum for further price increases may be insufficient.

 

However, steel mills inked fresh orders for slack coal in the run-up to the holiday. This, coupled with full materialization of the third coke price hike, contributed to near-term higher prices. Bullish sentiment further spread in the market.

 

Miners reported normal output in Changzhi, Shanxi province, thanks to stable shipments to term-contract washing plants. But they expected anthracite prices to decline in the near term following the recent surges.

 

Anthracite prices were temporarily stable in Jincheng, as local corrections relatively lagged behind the prevailing offers. Anthracite transactions ticked down in anticipation of weakened price rises.

 

In Yulin, Shaanxi province, safety checks posed limited impact on operations at low-stocked mines, resulting in stable prices.

 

Prevailing offers for 6,800 Kcal/kg NAR 0.4-0.5% sulfur small-lump anthracite rose 20-30 yuan/t to 1,100-1,170 yuan/t, free-on-rail basis with VAT; and the 0.6%-sulfur 6,000 Kcal/kg NAR slack coal was at around 830-840 yuan/t, ex-washplant basis with VAT.

 

As of April 26, Fenwei assessed the price of 7,000 Kcal/kg NAR mid-lump anthracite with 0.5% sulfur in Jincheng at 1,170 yuan/t, ex-washplant basis with VAT, up 50 yuan/t compared to April 19.

 

The price of 7,000 Kcal/kg NAR washed small lump anthracite (S 0.5%) in Jincheng increased 60 yuan/t from a week ago to 1,160 yuan/t, ex-washplant with VAT, and that of 6,000 Kcal/kg NAR anthracite slack with 0.5% sulfur in Jincheng reached 890 yuan/t, ex-washplant with VAT, up 60 yuan/t week on week.