China Shenhua Energy Co., Ltd, the listed subsidiary of state-owned coal giant Shenhua Group, produced 24.2 million tonnes of commercial coal in May, up 5.2% from April, the company said on June 16.
Industry insiders attributed to the increase mainly to increased restocking demand from utilities ahead of the peak power consumption in summer, after the giant further cut prices in late April to cope with flatness in the domestic market.
Shenhua further cut prices of some of its thermal coal products by 10-15 yuan/t, lowering FOB price for 5,200 kcal/kg NAR coal by 15 yuan/t to 390 yuan/t ($63.7/t) and for 4,800 kcal/kg NAR product by 10 yuan/t to 354 yuan/t, effective April 28.
However, tight supply in low-CV coal prompted the group to adjust up FOB price for 4,300 Kcal/kg NAR product by 10 yuan/t to 315 yuan/t from May 10.
Still, the May output was 4.0% below the year-ago year on year -- the ninth consecutive year-on-year decline, indicating a prolonged slackness in China’s oversupplied domestic coal sector.
Over January-May, Shenhua produced a total 116.5 million tonnes of coal, down 9.9% year on year; while total sales during the same period dropped 24.7% on year to 140.6 million tonnes.
China Shenhua’s coal sales fell 3.7% on year but rose 17.3% on month to 36.6 million tonnes in May, also the ninth successive year-on-year drop, reflecting improved coal sales after persisting price cuts since December last year.
In May, China Shenhua sold 21.2 million tonnes of coal via northern Chinese ports, up 10.4% on year and up 7.6% on month. Of this, coal shipped from Shenhua’s exclusive-use Huanghua port stood at 11.9 million tonnes or 56.1% of the total, up 4.4% on year and up 36.8% on month.
Over January-May, the company sold 74.7 million tonnes of coal via northern Chinese ports, down 21% year on year. Of this, coal shipped from Huanghua port stood at 37.6 million tonnes or 50.3% of the total, down 29.1% year on year.http://en.sxcoal.com/0/122247/DataShow.html