RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2021-09-17 11:55:00

CHINA NEED COAL

CHINA NEED COAL

PLATTS - 15 Sep 2021 - China is seen falling short of 50 million mt of metallurgical coal in 2021 amid rising domestic coking output capacity, sources said Sept. 15. 

Met coal is a key raw component used in producing steel.

In 2021, the country is seen retiring 28.92 million mt of old coking output capacity, and adding 58.575 million mt of new coking production capacity, which translates to a net 29.655 million mt increase in coking capacity this year, latest data by China Securities International, or CSI, showed.

Widening deficit

China is expected to see a wide deficit for met coal supply in 2021, according to Shenzhen-based brokerage Guotai Junan Securities.

This comes at a time when China is vigorously putting effort at dual control of energy consumption and energy intensity, capping production of its high energy consuming domestic steel sector.

China has been requesting steel mills to curb their annual production in 2021 either at par, or below, 2020 levels; a move that fits into the country's plan to achieve lofty carbon goals in the coming years.

Steel mills in provinces like Jiangsu and Shandong are gradually widening their output cuts, which are expected to accelerate in the coming weeks, S&P Global Platts reported earlier.

Meanwhile, China's met coal sector has been facing its own set of issues, with domestic prices shooting up in recent weeks.

Domestic prices were at Yuan 4,035/mt ($626/mt) Sept. 8 for premium low-vol hard coking coal in the Shanxi province, rising by as much as 45% from Aug. 11, Platts data showed.

Output issues

The domestic met coal sector is finding it difficult to release back output capacity that are on hold due to environmental controls, while import restrictions play a role in propping up met coal prices, according to Guotai Junan.

China's met coal supply has been impacted by ongoing strict safety checks, the government's policy of assuring sufficient supply and price stability for thermal coal, and imported coal volume, according to CSI.

CSI said it sees limited room for domestic met coal output to rise in 2021 due to state rules capping production, while coal mine accidents in the past few months have also squeezed ore supply.

Back in August, China's National Development and Reform Commission, in a circular, agreed to let 15 coal mines in Inner Mongolia, Shanxi, Shaanxi, Ningxia and Xinjiang areas to extend joint trial production for one more year, on condition that they can only boost output by meeting safety rules.

The 15 coal mines, with a combined 43.5 million mt/year output, are expected to supply 150,000 mt/d of ore, the NDRC data showed.

Despite this, CSI sees the addition of domestic mined coal output limited in the near term, but expects coal output to rise in the medium to long run, on the back of government policy assuring supply of materials that are in shortage.

On the import side, recent COVID-19 cases have often led to the shutdown of Ganqimaodu port in Inner Mongolia, which has restricted the inflow of Mongolian met coal imports, the CSI said.

Since August, some coal truck drivers were tested positive for COVID-19 at Ganqimaodu, disrupting truck movements at customs clearance.

Ganqimaodu, a land border port, is the largest channel for importing coal from Mongolia.

Other industry sources said coal imports from North America are likely to take a long time to reach China's shores, and were expensive, which has led to limited met coal imports from the US and Canada.

-----


Earlier:

CHINA NEED COAL
2021, August, 4, 12:25:00
CHINA NUCLEAR UP
The Xudabao nuclear project is owned by Liaoning Nuclear Power Company, a joint venture of CNNC (70%), Datang International (20%) and State Development and Investment Corporation (10%).
CHINA NEED COAL
2021, July, 30, 08:20:00
CHINA GAS PRODUCTION WILL UP
Since 2010, China’s natural gas output increased on average by 7.5%/year to 195 bcm in 2020.
CHINA NEED COAL
2021, July, 28, 10:40:00
CHINA SUPPORTS COAL
Historically just one of the major providers of finance to overseas coal power projects, China has more recently looked increasingly isolated as other nations and financial institutions continue to withdraw from coal.
CHINA NEED COAL
2021, June, 24, 12:10:00
CHINA NEED COAL
A conservative estimate would be for coal consumption of around one billion metric tonnes in 2050, still contributing 10%-15% of China's total energy consumption
CHINA NEED COAL
2021, June, 24, 12:05:00
CHINA COAL PRICES UP
The most-traded coking coal futures contract on the Dalian Commodity Exchange , for September delivery, ended at 2,037 yuan ($314.24) per tonne.
CHINA NEED COAL
2021, May, 25, 12:25:00
CHINA RENEWABLE TARGET 90 GW
China's installed wind and solar capacity has surged in recent years from 174 GW in 2015 (131 GW of wind and 43 GW of solar) to 535 GW in 2020 (281 GW of wind and 253 GW of solar),
CHINA NEED COAL
2021, May, 24, 13:00:00
CHINA LNG DEMAND WILL UP
This will inevitably increase China's demand for natural gas, including LNG, and boost prices for spot LNG cargoes, similar to the demand surge seen in the winter of 2020-21.
All Publications »
Tags: CHINA, COAL
Chronicle:
CHINA NEED COAL
2021, October, 26, 12:55:00
AUSTRALIA ZERO EMISSIONS 2050
Australia's adoption of a net zero emissions target is significant as it is one of the largest producers and exporters of fossil fuels and falling in line with the UN mandated net zero pledge would signal there could be tighter regulations on emissions reduction.
CHINA NEED COAL
2021, October, 25, 12:30:00
OIL PRICE: ABOVE $86
Brent increased 56 cents, or 0.7%, to $86.09 a barrel, WTI rose 62 cents, or 0.7%, to $84.38 a barrel.
CHINA NEED COAL
2021, October, 25, 12:25:00
RUSSIA'S CLOSED NUCLEAR CYCLE
Known as ROSA-N, the new model was developed by scientists in Rosatom's Proryv (Breakthrough) project, which works towards deployment of fast reactors and a closed nuclear fuel cycle.
CHINA NEED COAL
2021, October, 25, 12:20:00
RUSSIAN GAS FOR MONGOLIA
A meeting of the joint working group of Gazprom and the Government of Mongolia on the implementation of the Memorandum of Understanding regarding the project for pipeline gas supplies from Russia to China across Mongolia took place today in Ulan-Bator, Mongolia.
CHINA NEED COAL
2021, October, 25, 12:15:00
INDIA RENEWABLES 2.4 GW
The Solar Energy Corporation of India (SECI) has initiated a tender for 1,200 MW of wind projects under the tranche XII of the interstate transmission-connected (ISTS) programme.
CHINA NEED COAL
2021, October, 25, 12:10:00
JAPAN RENEWABLES 38%
The Cabinet of Japan has approved the 2030 renewables target (including hydropower) of 36-38% of the country's power mix by 2030 that was unveiled in July 2021.
CHINA NEED COAL
2021, October, 25, 12:05:00
CHILE RENEWABLES 80%
Chile has unveiled a new National Energy Policy, a roadmap for the development of the sector, which targets 80% of renewables in power generation by 2030 and 100% by 2050
All Publications »