Prices of all coal types have fallen to varying degrees (continued)

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The prices of all coal types have declined to varying degrees. As of April 14, due to weakening demand from downstream markets, the prices of all coal types in various regions of Shanxi have dropped to different extents. 　　The price of thermal coal declined slightly in mid-April, by about 30–35 yuan per ton. In the first quarter of this year, the price of thermal coal in Shanxi Province remained steady. But in April, we learned that the pit prices in the Datong area began to decline. Given the currently limited overall supply and the significant drop in inventory in Qinhuangdao, this situation is indeed special. We believe that with ongoing declines in inventory levels in Qinhuangdao, and the fact that prices of thermal coal have not risen as expected, coal distributors generally consider that market demand remains weak and the economy has not recovered. Meanwhile, small and medium-sized coal mines in the provinces surrounding Shanxi have begun to resume operations one after another, and small and medium-sized thermal coal producers in Shanxi are likely to restart production at the beginning of May, thereby releasing their existing production capacity. In addition, due to the maintenance work on the Daqin Line, coal traders along the route faced transportation constraints, which prompted coal dealers to lower their prices. As of the 14th of this month, the price of thermal coal with a calorific value of over 5,500 kcal has averaged a decline of 30–35 yuan per ton. Currently, the tax-exclusive price at the mine site for 6,000 kcal thermal coal in the Datong area of Shanxi is around 350 yuan per ton (including various taxes and fees), while the tax-exclusive price for high-quality 5,500 kcal thermal coal at the mine site is around 300 yuan per ton. 　　The price of coking coal continues to decline, with a drop of around 10%-15%. Affected by the ongoing downturn in the coke and metallurgy industries, the price of coking coal in Shanxi region continued to fall in April, by about 80 yuan per ton; it is now at or slightly below last year’s lowest level. The price of coking coal in Shanxi continues to decline, due to the limited purchasing capacity in the mid- and downstream markets. It is understood that the ex-plant price of secondary metallurgical coke in the Jinzhong area is currently around 900–1000 yuan per ton, including taxes; prices are slightly higher in other areas, but overall they remain below 1200 yuan per ton. The sharp drop in coke prices, coupled with the lack of signs of recovery in the steel market, has led to a continuous decline in the prices of coking coal in the Shanxi region. Currently, the ex-warehouse price of high-quality coking coal from Xishan Coal and Electricity, including taxes, has dropped to 1,050 yuan per ton. The ex-warehouse price of high-quality fatty coal from the Lingshi area, including taxes, is around 1,300 yuan per ton, while the ex-warehouse price of 1/3 coking coal from the Linfen area, including taxes, is approximately 1,050 yuan per ton. 　　The price of smokeless lump coal saw a slight decline in mid-April. The market price of smokeless lump coal in Shanxi remained relatively stable this month, with only a slight drop. In mid-April, the ex-factory price of anthracite coal in the main production areas of Shanxi, such as Jincheng and Yangquan, dropped by 30 yuan per ton. On the one hand, market demand is stabilizing. As spring plowing comes to an end, fertilizer manufacturers are less inclined to make purchases, while the prices of methanol and its downstream products remain relatively stable, resulting in steady market demand ； On the other hand, small and medium-sized coal mines in Henan Province, another major province for lump coal production, will resume operations fully on April 15; it is estimated that around 100 million tons of production capacity will be released, with a large portion coming from enterprises that produce lump coal. This is undoubtedly another blow to market demand, which has already begun to decline. Currently, the tax-inclusive price of smokeless medium-sized slabs in the Jincheng area is around 1,250 yuan per ton, while the tax-inclusive price of smokeless small-sized slabs is 950 yuan per ton. 　　The price of injection coal remains low. At present, the price of injection coal in Shanxi is relatively stable; the ex-warehouse price of Yangmei No. 2 injection coal, including taxes, is around 780 yuan per ton. As pricing adjustments were just completed at the end of March, prices are currently stable. However, due to the sluggish downstream steel market and the decline in prices of raw coal (low-grade coal, anthracite), there is still room for further price drops.