Calcined Anthracite Coal under high cost

Since 2021, policies such as dual control of energy consumption, carbon peak and carbon neutralization have been introduced. The market of calcined anthracite coal with electric calcined anthracite as raw material is facing increased pressure, enterprises' start-up is reduced, the cost is increased, and the market quotation is chaotic,

1:Supply situation

Trend chart of domestic Calcined Anthracite Coal output

According to incomplete statistics, at present, the market supply of various grades of calcined anthracite coal   in China continues to shrink. Under the influence of environmental protection inspection, the overall start-up in Ningxia is low, and even some enterprises are in the state of shutdown, and there is no plan to resume production in the near future; There are also a few enterprises that limit production and maintain a low start-up rate. They may continue to operate in this state until the end of the environmental protection policy.

2:Price Situation

Market price trend of calcined anthracite coal

Recently, the market price of calcined anthracite coal continues to rise. The market price of 90 calcined anthracite coal is 2800-2850 yuan / ton (excluding tax), 92c calcined anthracite coal is 2950-3000 yuan / ton (excluding tax), and 93C calcined anthracite coal is 3050-3150 yuan / ton (excluding tax). Recently, the market quotation is chaotic, the products are mixed, and the quotation difference is large. Affected by the environmental protection policy in Northwest China, the price of raw materials continues to rise, the pressure of manufacturers increases, the willingness to support the price is strong, and the market price of calcined anthracite coal to rise.

3、 Downstream demand

Trend of electric arc furnace steelmaking in China

At present, the domestic steel price is stable and weak, and the overall transaction in the market is weak. Affected by the sudden drop of rainfall and temperature, the futures market fell sharply. Affected by environmental protection policies, Jiangsu, Guangdong and other places began to resume production one after another, the average daily output of crude steel rebounded slightly, and the sustainability of downstream demand release was poor. With the release of the production restriction policy in the heating season, the power restriction policy continued to affect Henan and other places, the futures market stopped falling and rebounded, and the market confidence gradually recovered.

Overall, the price of raw materials continues to rise, providing cost support for calcined anthracite coal, and the price may continue to rise. However, the downstream demand increase is not obvious, and the calcined anthracite coal is greatly affected by the steel plant, and the driving force is insufficient in the short term. It is expected that the market price of calcined anthracite coal agent will continue to follow the strong operation of raw material cost.