JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
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Market Overview
PP price rebounded with thin trading at the beginning of this week because of low inventory in petrochemicals and reduced
supply from coal chemical plants and began to go down with fluctuation at the end of the week.
Price Trend
China Propylene MonomerPrice, 2014-2015
PP Raf.
CNY/mt
North China: Hohhot Petrochemical T30S price
CNY8,150/mt; Shenhua L5E89 price CNY8,050/mt;
Shenhua Ningxia Coal 1102K price CNY8,100/mt; East
China: Shandong Shenda PPH-T30 price CNY8,250/mt
Ningxia Baofeng S1003 price CNY8,200/mt ; South China:
Shenhua Ningxia Coal price CNY8,350/mt; Shenhua L5E89
price CNY8,400/mt.
PP Inj.
North China: Qingdao V30G price CNY8,500/mt; Daqing
Refining & Chemical HP500P price CNY8,150/mt; East
China: Shenhua Ningxia Coal 1100N price CNY8,550-8,600/
mt; Daqing Refining & Chemical 500P price CNY8,500/mt;
South China: Guangzhou CJS price CNY9,600/mt.
Shandong Huaxing EXW
CFR China
$/mt
17,000
1,700
14,000
1,400
11,000
1,100
8,000
800
5,000
500
21-Jan 21-Mar 21-May
21-Jul
21-Sep 21-Nov
21-Jan
Copolymer
Zhongsha 200K price CNY8,450/mt; Tianjin Lianhe EPS30R price CNY8,700/mt; East China: Shenhua Ningxia Coal 2500H
price CNY8,700/mt; Dushanzi K8003 price CNY 8,900/mt; South China: Maoming EPS30R price CNY8,850/mt; Dushanzi
K8003 price8,900/mt.
China PP Price Change, 2015
Grade
Homopolymer Raf.
Homopolymer Inj.
Copolymer
CNY/mt
Date
North China
East China
South China
Central China
Jan 22nd
8,050-8,300
8,100-8,400
8,350-8,650
8,250-8,450
Jan 15th
8,000-8,100
8,150-8,500
8,300-8,700
8,200-8,400
Jan 22nd
8,150-8,800
8,500-8,900
9,000-9,400
N/A
Jan 15th
8,200-9,100
8,350-8,700
9,000-9,400
N/A
Jan 22nd
8,400-8,900
8,600-8,850
8,850-9,100
8,300-8,500
Jan 15th
8,300-9,300
8,500-8,600
8,950-9,150
8,350-8,500
Data Source: JYD Information Co., Ltd
Feedstock
Propylene Monomer Price, 2015
$/mt
Jan 21st
Jan 20th
Jan 19th
Jan 16th
Jan 15th
Average
CFR China
802
785
N/A
772
772
780.6
FOB South Korea
742
725
N/A
712
712
720.6
Data Source: JYD Information Co., Ltd
Exchange Rate: US$1=CNY6.2265 (Jan 22nd)
P-1
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
Crude Oil
This week, global crude futures experienced an up-downup trend as both positive news and negative news surged
into the market.
Although OPEC raised global oil demand estimate in its
monthly report, the growth of its supply forecast along with
its December daily output of over 30 million bbl aggravated
excessive supply and dragged down oil prices. Later on,
IEA slashed its 2015 crude supply growth outlook, which
spurred a price rocket. However, priced plunged again in
line with Iraq crude output posting new high, Goldman
Sachs lowering oil price forecast sharply and IMF slashing
economic growth outlook.
On January 22nd, Total released that it would trim
productive expenditure for shale oil in US and other
regions, sparking market expectation of easing the US crude
oversupply; meanwhile, OPEC and IEA officials’ prediction
that oil price would bounce up later this year also supported
oil price to go upward.
International Crude Futures Price, 2014-2015
$/bbl
WTI
Brent
120
100
80
60
40
21-Jan
21-Mar
21-May
21-Jul
21-Sep
21-Nov
21-Jan
China Propylene Monomer Price, 2014-2015
CNY/mt
Shandong Huaxing EXW
CFR China
$/mt
Propylene
17,000
1,700
Despite weak demand before the holiday, propylene price
in both domestic and foreign markets still continued to
climb for tight supply. Overhaul in South Korea reduced
overseas supply and unexpected PDH production halt in
Shaoxing Sanyuan depressed the domestic supply. Purchase
surge from Taiwan due to malfunction in CPC Corporation
also contributed to price rise. Propylene market will see
a lasting rebound against low inventory in refineries and
adequate demand.
14,000
1,400
11,000
1,100
8,000
800
5,000
21-Jan
500
21-Apr
21-Jul
21-Oct
21-Jan
Coal & Methanol
Coal: Domestic power coal price was generally stable with slight decline and may continue to go down in a short period of time
for lasting weak downstream demand and oversupply.
Methanol: Under the support of high futures prices, domestic methanol quotation rebounded slightly with thin trading and
may stay at the current level for a short term or decline in some regions.
Propylene Monomer Price, 2015
$/mt
Jan 21st
Jan 20th
Jan 19th
Jan 16th
Jan 15th
Average
CFR China
802
785
N/A
772
772
780.6
FOB South Korea
742
725
N/A
712
712
720.6
Data Source: JYD Information Co., Ltd
Cost Analysis
Petrochemical: Propylene price in foreign market continued to go up for tight supply and teapots with low inventory reduced
sales to lift up prices. Under sales pressure, PP spot price began to decline after a slight fluctuation. Thus, profit margin of
petrochemicals narrowed down compared to last month.
MTO: With less support from spot market and thin trading at ports, methanol price went down and may remain low before the
holiday as downstream purchase for inventory has drewn to an end. Spot PP price continued to decline resulting from inactive
trading. With low cost, profit margin of MTO surged.
CTO: Power coal price would remain stable in a short term amid economic downturn and low demand and may decline mildly
later. Spot PP price has declined to its lowest and may continue to go down as plants are reluctant to make large purchase before
the holiday. Without adequate cost support, profit margin of CTO units narrowed down.
P-2
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
Downstream Markets
This week, BOPP market was generally upward. Prices
of petrochemicals remained stable while PetroChina raised
their listing prices. Film plants lifted up their quotations as
well, with plants in North China as an exception. Quotation
in East China went up to about CNY10,300/mt; many plants
in South China raised their EXW price by about CNY100/mt
with thin trading as downstream traders were still holding a
wait-and-see sentiment.
Downstream traders expected the price to go down further
due to low prices in both crude oil and propylene monomer
and they were reluctant to purchase. Next week, film price
may fall back as some plants have already cut down their
quotations and PetroChina’s branches in East China lowered
their prices as well.
Petrochemical Plants PP Production Cost, 2014-2015
Margin
Zhenhai T30S
Production cost
CNY/mt
12,000
CNY/mt
1000
10,500
700
9,000
400
7,500
100
-200
6,000
22-Jan
Forecast
Against global and domestic economic downturn, many
plants may choose to halt production for holiday ahead
of the schedule and feedstock purchasing will cool down.
International crude price is expected to dip further, and
petrochemicals will give priority to sales of inventory. Next
week, petrochemicals are expected to adopt listing price or
fixed price reduction policy.
Expecting lower prices, traders were reluctant to purchase
to hold low inventory. Tight spot supply and petrochemicals’
sales suspension for settlement will ease the price falling
trend.
With cost and weak demand going against high price, PP
price may decline by about CNY100/mt. Raf. and copolymer
in East China may price respectively at CNY8,000-8,300/mt
and CNY8,400-8,600/mt.
22-Mar 22-May
22-Jul
22-Sep
22-Nov
22-Jan
MTO Units PP Production Cost, 2014-2015
Production cost
Ningbo Heyuan T30S
Margin
CNY/mt
12,000
11,000
10,000
9,000
8,000
7,000
22-May
Influential Factors
Crude Oil: Crude price dip slows down in a short time due
to reduced supply of shale oil and may continue to go down
in a long term for oversupply.
22-Jul
22-Sep
22-Nov
22-Jan
CTO Units PP Production Cost, 2014-2015
Supply & Demand: Long-term overhaul in Sichuan
Ethylene will counter the oversupply in a short period of
time amid a slack market.
CNY/mt
Margin
Production cost
12,000
Market Sentiment: Traders choose to operate at low
inventory, expecting a further price decline. Both traders
and plants have no intention for large purchase.
Foreign Market: Crude price may continue to go down.
Weak domestic demand depresses the foreign market and
most traders transact with low inventory.
10,000
5,300
8,000
4,800
6,000
4,300
22-Jan 22-Mar 22-May
3,800
22-Jul
22-Sep 22-Nov 22-Jan
Data Source: JYD Information Co., Ltd.
P-3
CNY/mt
5,800
4,000
Petrochemical Plants: Petrochemicals will focus on
inventory reduction before the holiday. Price drop and
listing price are still possible.
Baotou L5E89
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
Appendix
Sinopec PP Price Summary, 2014-2015
Branch
Producer
Qilu Petrochemical
Yansan Petrochemical
North China
Tianjin Lianhe
Jinan Refinery
Qingdao Petrochemical
Shanghai Petrochemical
East China
Yangzi Petrochemical
Zhenhai Refinery
Jiujiang Petrochemical
Guangzhou Petrochemical
South China
Maoming Petrochemical
Hainan Refinery
Zhenjiang Dongxing
Fujia Refining & Chemical
Wuhan Phenix
Central China
Hunanchangsheng
Jingmen Petrochemical
Zhongyuan Ethylene
Shanghai Secco
Others
Yan'an Refnery
Shaoxing Sanyuan
Ningpo Heyuan
CNY/mt
Product No.
Grade
Jan 21st
Jan 16th
Remarks
T30S
T36F
S1003
B8101
K8303
B4808
T30S
EPS30R
T30S
Z30S
T30S
T300
M800E
F280SO
F800E
M180R
F401
S1004
J340
K8003
T30S
F280Z
T30S
T36F
F401
J641
CJS700
CS820
T30S
EPS30R
EPC30R-H
EPT30R
T30S
T30S
T30S
1080K
T30S
T36F
T30S
V30G
T38F
T30S
T36F
T30S
S1003
S2040
K8003
K4912
K7926
T30S
T30S
T30S
Raf
Film
Raf
Pipe
Copolymer
Infusion Bottle
Raf
Copolymer
Raf
Fiber
Raf
Raf
Transparent
Film
CPP
Copolymer
Raf
Raf
Copolymer
Copolymer
Raf
Film
Raf
Film
Raf
Copolymer
Inj
Fiber
Raf
Copolymer
Copolymer
Copolymer
Raf
Raf
Raf
Raf
Raf
Film
Raf
Inj
Film
Raf
Film
Raf
Raf
Fiber
Copolymer
Transparent
Compolymer
Raf
Raf
Raf
8,550
8,500
8,550
9,800
8,800
9,050
8,450
8,500
8,350
8,700
8,350
8,700
9,300
8,700
9,050
8,800
8,700
8,600
8,800
8,800
8,700
8,600
8,550
8,550
8,800
9,450
9,600
9,500
9,000
9,000
9,600
9,000
8,700
8,700
8,700
8,650
8,400
8,450
8,400
8,450
8,450
8,400
8,450
8,350
8,600
8,900
8,900
9,300
8,900
8,100
8,550
8,550
8,300
8,350
8,200
9,800
8,800
8,800
8,200
8,300
8,100
8,550
8,100
8,700
9,250
8,700
9,000
8,800
8,700
8,600
8,800
8,800
8,700
8,600
8,550
8,550
8,800
9,450
9,600
9,500
9,000
9,000
9,300
9,000
8,700
8,700
8,700
8,650
8,250
8,500
8,250
8,350
8,500
8,250
8,500
8,200
8,500
8,900
8,900
9,300
8,900
8,400
8,550
8,550
Listing price
Listing price
Listing price
Fixed price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Fixed price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Listing price
Fixed price
Fixed price
Data Source: JYD Information Co., Ltd.
P-4
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
PetroChina PP Price Summary, 2015
Branch
South China
Producer
Product No.
Grade
Jan 21th
Jan 16th
Daqing Petrochemical
T30S
Raf
8,600
8,400
Dushanzi Petrochemical
K8003
Copolymer
9,050
8,900
Lanzhou Petrochemical
T30S
Raf
8,350
8,100
Ningxia Petrochemical
T30S
Raf
8,250
8,100
S1003
Raf
8,350
8,100
K8003
Copolymer
8,650
8,550
EPS30R
Copolymer
8,750
8,650
T30S
Raf
8,400
8,100
T36F
Film
8,500
8,300
S1003
Raf
8,400
8,100
K8003
Copolymer
8,600
8,300
EPS30R
Copolymer
8,600
8,300
PA14D
Pipe
9,700
9,700
PPB4228
Pipe
9,300
9,300
Z69S-1
Fiber
8,650
8,550
T30S
Raf
8,850
8,800
T36F
Film
8,500
8,500
S1003
Raf
8,550
8,500
K8003
Copolymer
8,850
8,750
EPS30R
Copolymer
8,850
8,750
T30S
Raf
8,400
8,200
T36F
Film
8,400
8,200
T30S
Raf
8,400
8,200
PA14D
Pipe
9,500
9,500
4228
Pipe
9,100
9,100
T30S
Raf
8,400
8,200
T38FE
Film
8,500
8,300
Lanzhou Petrochemical
T30S
Raf
8,350
8,200
Ningxia Petrochemical
T30S
Raf
8,300
8,150
K8003
Copolymer
8,650
8,400
EPS30R
Copolymer
8,650
8,400
Southwest China
Dushanzi Petrochemical
Daqing Petrochemical
North China
Dushanzi Petrochemical
Daqing Refining & Chemical
Dalian First Organic
Daqing Petrochemical
East China
Dushanzi Petrochemical
Daqing Petrochemical
Northeast China
Daqing Refining & Chemical
Fushun Petrochemical
Northwest China
CNY/mt
Dushanzi Petrochemical
Data Source: JYD Information Co., Ltd.
JYD China PP Market Weekly Report
Director
Yang Li
yangli@315.com.cn
Editorial director
Wang Zhenxian
wangzhenxian@315.com.cn
Chief Editor
Li Li
lili@315.com
Amanda Zhao
+86-10-84428984
zhaolei@315.com.cn
Editor
Melinda Zhang
+86-10-84428585
zhangcuiping@315.com.cn
Li Na
lina@315.com.cn
Sun Chengcheng
sunchengcheng@315.com.cn
Fuxi
fuxi@315.com.cn
JYD Information Co., Ltd is recognized as the leading information provider in China.
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P-5
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
PP Units Operation Status, 2014-2015
Region
North
China
Northeast
China
East China
South
China
Central
China
'000mt/yr
Company name
Capacity
Affiliated to
Operation status
Yanshan Petrochemical
440
Sinopec
Line 1 produce C5908; line 2 produces 4220; line 3 produces K8303
Tianjin Lianhe
70
Sinopec
Produce T30S
Tianjin Zhongsha
450
Sinopec
Produce EP200K
Dagang Petrochemical
100
PetroChina
Production halt
North China Petrochemical
100
PetroChina
Production halt
Qilu Petrochemical
70
Sinopec
Produce EPS30RA
Ji’nan Refinery
120
Sinopec
Produce Y24
Qingdao Petrochemical
200
Sinopec
Produce T03
Shijiazhuang Refinery
200
Sinopec
Produce T03
Shandong Yuhuang
100
Teapot
Production halt
Shandong Shenda
200
Lianhong Group
Produce PPH-T30
Hebei Haiwei
300
Teapot
Produce T30S
Daqing Refining & Chemical
600
PetroChina
Old unit produces PA14D; new unit produce HP500P
Daqing Petrochemical
100
PetroChina
Produce T30S
Fushun Petrochemical
390
PetroChina
Old unit produces T30S, new unit produces L5D98
Dalian First Organic
270
PetroChina
New unit produces T36F; old unit produces H39S-2
Jinxi Petrochemical
150
PetroChina
Production halt
Liaotong Chemical
310
Huajin Group
Old unit under production halt; new unit produces SP179
WEPEC Dalian
150
JV
Produce T30S
Zhanhai Refining & hemical
500
Sinopec
Unit 1PP produces M60T; Unit 2PP produces Z30S
Yangzi Petrochemical
340
Sinopec
Line A produce F401, Line B produce J340; 2PP produce PPB-M30-VH
Shanghai Petrochemical
400
Sinopec
Line 1 produce F280SO; line 2 produce F800E; line 3 produce M300RH
Jiujiang Petrochemical
100
Sinopec
Produce T30S
Fund Energy
400
Ningbo Heyuan
Produce T30S
Xuzhou Haitian
200
Haitian Group
Produce HP550J
Formosa Ningbo
450
Formosa Group
Main line produces 1120; minor line produces 1080
Shaoxing Sanyuan
500
Zhejiang Fuling
Old unit produces Y26SY, Sanjin produces F280F
Maoming Petrochemical
670
Sinopec
Line 1 produce EPC30R-H; line 2 produce HT9025NX;
Guangzhou Petrochemical
200
Sinopec
Line 1 produce PP power, line 2 produce CJS700
Fujian Lianhe
670
Sinopec
Line 1 produces 1100N; line 2 produces 1080K; old unit produces T30S
Hainan Refinery
200
Sinopec
Produce V30G
Zhanjiang Dongxing
140
Sinopec
Produce V30G
Sinochem Quanzhou
200
Sinochem
Production halt
Qinzhou Petrochemical
200
PetroChina
Produce L5E89
Beihai Refining & Chemical
200
Sinopec
Produce Z30S
Zhongyuan Ethylene
160
Sinopec
Old unit produces M02; new unit produces PPH-T03
Luoyang Petrochemical
220
Sinopec
Old unit under production halt; new unit produce F03G
PetroChina
Under 40 days’ overhaul since Dec 31st, 2014
Sichuan Petrochemical
Wuhan Petrochemical
120
Sinopec
Produce PPH-T03
Wuhan Ethylene
400
Sinopec
Line JPP produce K7227H; Line STTP (200,000mt) produce V30G
Jingmen Petrochemical
120
Sinopec
Produce PPH-T03
Hunan Changling
140
Sinopec
Produce Z30S
(to be continued on page 7)
P-6
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
(from page 6)
PP Units Operation Status, 2014-2015
Region
Northwest
China
Company name
Capacity
'000mt/yr
Affiliated to
Operation status
Dushanzi Petrochemical
690
PetroChina
Line 1 produce EPS30R; line 2 produce T30S; line 34 produce 0640P
Lanzhou Petrochemical
340
New unit produce T30S, old units under long-term production halt
Yan’an Refinery
300
Shenhua Ningxia Coal
1,000
PetroChina
Yanchang
Petroleum
Shenhua Group
Hohhot
150
PetroChina
Produce T30S
Ningxia Petrochemical
100
PetroChina
Produce T30S
Qingyang Petrochemical
100
PetroChina
Production halt
Shenhua CTO
300
Shenhua Group
Produce L5E89
Datang Duolun
460
Datang
Production Halt
China Coal Shaanxi Yulin
300
China Coal
Produce L5E89
Yanchang China Coal Yulin
600
Yanchang Petroleum
Line 1 produce S1003, line PP2 (300,00mt) under production halt
Ningxia Baofeng
300
Teapot
Produce S1003
Pucheng Clean Energy
400
Teapot
Will produce HP550J
New unit and old unit produce T30S
Line 1 and line 2 produce raf; line 3 produce copoly, line 4 produce inj
Data Source: JYD Information Co., Ltd.
China PP Units Production Halt, 2014-2015
Company
Datang Duolun
‘000mt/yr
Capacity
Situation
Halt Production on
To Restart on
230
Under maintenance
Mar 8th, 2014
Pending
230
Under maintenance
Aug 25th, 2014
Pending
Maoming Petrochemical
200
Under maintenance
Jan 6th
Jan 21st
Sinochem Quanzhou
200
Under maintenance
Jan 20th
Pending
Sichuan Ethylene
450
Plan for production halt
Dec 30th, 2014
Early Feb
Qingdao Petrochemcal
200
Overhaul plan
Early Jun
Late Jul
Yanchang China Coal Yulin
300
Under maintenance
Oct 21st, 2014
Pending
Shenhua Ningxia Coal
200
Production halt for feedstock
Jan 20th
Jan 22nd
Xuzhou Haitian
200
Production halt for feedstock
Early Jul
Late Aug
Liaotong Chemical
60
Emission reduction
Oct 29th, 2014
Pending
Yanshan Petrochemical
120
Production halt for feedstock
Jan 9th
Jan 16th
Guangzhou Petrochemical
140
Under maintenance
Jan 13th
Jan 22nd
Data Source: JYD Information Co., Ltd.
News & Commentary
PP price decline is just around the corner
downstream operating rate had no big change, but operating
rate of raf. showed a downward tendency under great
inventory pressure. As the Spring Festival is approaching,
most plants choose to produce in part-time to finish their
orders.
Downstream operating rate will decrease in late January.
Traders will begin to purchase after the last week rebound,
instead of high price strategy, sales promotion by discounts
will be a good choice to reduce inventory. According to JYD,
this week, PP price may decline and PP raf. might probably
reach a new record low. Some traders and downstream
plants intend to purchase for inventory at low price before
the holiday, which will bring another round of rebound at
the end of January and the beginning of February.
PP output in northern China in early January, 2015 was
about 146,400mt, down 8,600mt from the previous month.
January witnesses a slight growth in raf., rapid growth in
dystectic copolymer and sharp decline in eutectic copolymer.
Output of both non-woven fabrics and fibers went down due
to the warm winter.
PP price ceased to rebound late December, 2014 and
began to decline after a short-term fluctuation before the
New Years’ holiday, reaching a record low in January, 2015
for weak downstream demand. In middle January, as raf.
price fell to as low as CNY7,900-8,000, some traders took
the chance to purchase, spurring another round of rebound.
According to JYD, in the first half of January, general
P-7
JYD CHINA PP MARKET WEEKLY REPORT
January 22, 2015
Oil dips amid weak economic growth
Shanxi suspends levy of two coal funds
On January 20th, international crude oil price kept
downward under pressure amid Chinese economy growth
slowing and on December Iraq crude daily output reaching
another record. NYMEX crude March contract settled at
$47.79/bbl. Brent crude March contract fell $1.33/bbl to
$48.84/bbl with 2.65% decline.
According to data compiled by China Statistics on late
January 20th, the growth rate of Chinese economy was 7.4%
in 2014, which was beyond expectations, the weakest annual
expansion in 24 years. Meanwhile, China Prime Minister Li
Keqiang said, Chinese economy was under great downward
pressure facing with a lot of difficulties on political and
economic reforms, as well as falling real estate market and
weak demand, which mean that bulk commodity will keep
downward in 2015 after sharply fall in 2014.
Additionally, IMF cut global outlook. Olivier Blanchard
from IMF said the new factors supporting economy, such
as sliding crude price, weak euro and Japanese yen, are
unlikely to offset the influence exerting by economy crisis
and potential slowing growth in many countries.
Therefore, IMF and UBS cut Chinese economy growth
to 6.8%, of which the former value was 7.1%, as Chinese
government will restrict stimulus policies in order to curb
credit and investment risk.
Iraq minister of energy Adel Abdel Mehdi said, crude oil
output was 4million bbls daily in December, the highest
record. Furthermore, oil minister Bijan Zanganeh said,
Iran and other OPEC members didn’t reach an agreement
on what to do to prevent falling oil price, and Iran had no
intension to hold an emergency meeting to discuss oil price.
Coal mining companies in northern China’s Shanxi
province would be exempted from the levy of two coal funds
this year, partly easing a potential cost increase under the
new price-based resource tax, sources said.
The two funds-the environment recovery fund of 10 yuan/
t and mine transformation fund of 5 yuan/t – were first
collected in October 2007 and have been lifted since August
1, 2013, part of the measures the provincial government
adopted to help struggling miners out of the market
slackness.
Over the past two years, the Shanxi government has rolled
out a series of measures to support local miners. Besides the
suspended levy of the two funds, it also eliminated quite a
number of illegal local government charges that have existed
for years.
On July 1 2014, Shanxi eliminated the coal inspection
management fee and lowered the quality inspection fee.
The province lopped 3 yuan/t off the coal sustainable
development fund, reducing the levy on coking coal to 20
yuan/t at the most and thermal coal to 15 yuan/t.
Shanxi removed road restrictions and relevant fees on coal
outbound shipment on December1, 2014.
On January 1, 2015, it scrapped the service charges levied
on the five major coal groups.
China’s domestic coal market has been declining since
2012. The Fenwei/Platts CCI1 Index for domestic 5,500 Kcal
NAR coal traded at Qinhuangdao port was assessed at 496
yuan/t on January 22, inclusive of VAT, FOB basis, a slump
of 74 yuan/t from a year ago.
P-8