According to Shanghai Securities News, Shenhua cut its key 5500 kilocalories per kilogram energy-grade thermal coal price to 462 yuan per tonne.
While this price is down by up to 8% from the previous month, the recent plunge in Newcastle spot thermal coal prices to below $60/t indicates that Chinese market prices could fall much further yet.
It should also be noted that the March average price of 5500kcal/kg thermal coal (Qinhuangdao port standard) of 465 yuan per tonne was considered the lowest price since August 2007 at the time.
Meanwhile, website China Coal Resource reported that leading local metallurgical coal producer Shanxi Coking Coal Group could cut its prices by 30-50 yuan per tonne from April.
“Except for Shanxi Coking Coal, almost all coking coal producers have already cut prices by around 30 yuan/t during March, exerting great sales pressure on the group, which hasn’t published any prices adjustments,” the website commented.
China has been implementing various coal quality restrictions and coal taxation measures since October last year which are estimated to cut 10 million tonnes of annual global seaborne exports alone, according to Macquarie Wealth Management.
