Prices for coking and pulverized coal in Far Eastern ports fell sharply in September

The cost of coking coal of the GZh grade in the ports of the Far East during the week of September 18 fell immediately by 7.7 percent, to $166 per ton, and pulverized coal fuel - by 15 percent, to $181. Kommersant reports this with reference to data from the Center for Price Indexes (CPI).

Back in early September, prices rose to their highest levels since 2024, but the actions of the Chinese authorities significantly affected the market situation.

As indicated in the Center for Research, after completing inspections at production, the departments recommended their own coal companies to sharply increase production. Meanwhile, the largest steel companies in China have launched an initiative to control production and reduce steel inventories, which is associated with a decrease in demand.

In August, according to the World Steel Association (WSA), China cut metal output by 3.7 percent, and in the eight months since the beginning of the year the fall was 3.1 percent, which was the maximum value among the largest producers. CCI director Evgeny Grachev noted that most Chinese steel mills are already operating at a loss and therefore want to voluntarily limit supply to increase prices.

Boris Krasnozhenov, head of the investment analysis directorate at Alfa Bank, said that the export of Russian coking coal in the first eight months is comparable to the result of last year. This figure was achieved due to recent months, when in China, due to accidents at mines and subsequent inspections, production fell sharply.

According to Maxim Shaposhnikov, advisor to the managing fund of the Industrial Code, coking coal exports could fall by three to four percent by the end of the year, especially if the United States imposes sanctions on the purchase of this energy source in Russia.