On March 4, the Hong Kong branch of Shenhua Coal Trading Co., Ltd., reached an intent of cooperation regarding importing 670,000 tons of coal in 2022 for users in Zhejiang Province, which marks a breakthrough in the long-term cooperation mode through direct procurement in Zhejiang. Thus, Shenhua Coal Trading Company’s long-term import procurement contracts has covered all major sea-borne regions across the country.
In the first quarter of 2022, Shenhua Coal Trading Company focused on meeting the requirements of building a first-class enterprise and endeavored to overcome the fluctuations of the international coal market and diversify its supply channels. By promoting the single ship index pricing model to help end users recognize the advantages of long-term direct procurement of imported coal while enhancing coordination and communication, it completed plans with Zhejiang users on importing nine shiploads of high-calorie coal directly from Indonesia throughout the year. These efforts vigorously promoted the implementation of China Energy’s strategy of “increasing the ratio of long-term direct procurement of imported coal”.
At the same time, to meet the needs of end users, the company actively coordinated with upstream suppliers to increase the tonnage of ships per voyage from 55,000 tons to 75,000 tons, which reduced the shipping cost and improved efficiency, laying a solid foundation for the stable coal supply throughout the year.