NEWS
Coal   Building Materials  

China’s cement prices rise as coal demand recovers

Rising cement prices in several Chinese regions signal that the recovery in the sector is picking up pace, which could boost coal demand with the industry being a large-scale consumer.

An increase in economic activity has also pushed the combined daily coal consumption at key Chinese coastal utilities to its highest level in over two months as the country recovers slowly from the coronavirus outbreak.

More than 10 cement producers in northwest and east China have raised cement prices by 20-65 yuan/t ($2.80-9.15/t), with other regions expected to follow as infrastructure projects restart after the coronavirus outbreak. China's government is pushing for over 15,000 infrastructure projects to be restarted nationwide, which is expected to increase cement demand significantly by mid-April.

China's construction industry consumed 490mn t of coal in 2019, according to data from coal industry association CCTD, with the cement industry accounting for much of it. The cement sector revival could lift demand for Australian high-ash coal, which has faced sluggish Chinese demand in recent weeks because of reduced heating requirements and subdued economic activity. Chinese cement producers are seen as slightly less price sensitive than Chinese utilities when it comes to buying Australian coal.

Combined daily coal consumption from China's six key coastal utilities reached a fresh high at 616,700 t/d yesterday, the highest since 19 January and the first time it has risen above 600,000 t/d in more than two months after a few weeks of volatility at the start of March.

The easing of coronavirus emergency alert levels in China has paved the way for economic activity to resume and has helped to boost coal consumption. Residents in Hubei province's Wuhan, the city at the epicentre of the coronavirus outbreak, will be released from a lockdown by 8 April.

But the recent pick-up in demand may take time to be reflected in China's domestic spot prices of thermal coal given current high stocks, with inventories at the key coal transshipment port of Qinhuangdao at 6.4mn t yesterday. Yesterday's bids for NAR 5,500 kcal/kg coal were around Yn541-545/t fob north China ports, with offers at Yn546-548/t. Argus last assessed this market at Yn549.50/t fob Qinhuangdao on 20 March.

By Kelvin Leong

News No: 8860
Date: 2020/03/25 - 18:23
News Source: Argus Media

China  price  Rising  cement  coal 

Comments:

Leave a Comment:

   
   
   
 

Vietnam industries to remain open amid curbs

Several coal-consuming industries are likely to remain operational in Vietnam along with the power stations even as the government intensifies efforts to contain the coronavirus outbreak. But health-related precautions may result in labour challenges.
 

Indonesian coal producers consider output cuts

A number of Indonesian coal mining firms are considering cutting production amid expectations that Asia-Pacific demand will be heavily affected by the coronavirus pandemic.
 

China's Evergrande to launch NEV production in 2021

Chinese investment holding company Evergrande Health is on target to start commercial production next year of its Hengchi series new energy vehicles (NEVs).
 

Mongolia resumes China coal exports

Mongolia has gradually resumed coal exports to China through four border points from earlier this week, after two delayed restarts since exports halted in early February.
 

Petrobras cuts Brazil oil production by 9pc

Brazil's state-controlled Petrobras has doubled production cuts to 200,000 b/d in response to the oil price collapse.
 

India: Ferro Silicon Prices Remain Stable W-o-W

Indian Ferro Silicon prices remain stable amid short supply situation in Bhutan and Guwahati. Meanwhile, the supply of raw materials is still a concern for the producer. the Ferro Silicon smelters are almost booked for the month.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners