Tianjin Xinyue Industrial and Trade Co., Ltd.
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Coastal coal market is expected to rebound slightly after Dragon Boat Festival

Jul. 01, 2020

Recently, under the influence of various environmental safety inspections, such as the 20-year energy check-up and coal mine safety month, the coal mines in the main producing areas have all experienced production cuts and shutdowns, and the overall output supply is tight. The supply of coal mines in Shaanxi Yulin area is limited, and the demand for inland sales is stable. In addition, some customers in Inner Mongolia have turned to Yulin for purchases. The overall shipments are good. Most coal mines have prices ranging from 10-20 yuan. Some large mines bid for mixed coal with a maximum increase of 78 yuan. The transportation from Jinmeng port to railway is stable and the coal price is relatively strong. Since mid-June, the origin prices have continued to rise and remain strong, with increased shipments from traders; the Daqin Line has reached full capacity, with a maximum daily shipment volume of 1.38 million tons.


In the past week, there has been less new demand from downstream, divergent supply and demand mentality, and low market coal trading activity. In the short term, the coal market has been weak, and it is still mainly operating smoothly. The port market, supported by upstream shipping costs, combined with recent increases in origin prices, prompted users to increase concerns about later shipments and arrivals. Power plants and some traders in southern China began to seek more goods in Bohai Rim ports. However, the problem is that there are not many coal consignors at present, which has caused the seller to have a strong willingness to sell prices. In terms of price, the coal in the low-sulfur 5500 kcal market at the Bohai Rim port was flat by the index. The single low-sulfur Mongolian coal was flat or the index rose by 1-2 yuan, and small batches of coal were reported to float by 4 yuan.


During the Dragon Boat Festival, the market was relatively deserted, there were not many transactions, the number of inquiries decreased, the overall market did not change much, and spot prices continued to remain stable. End users' slowing coal purchases in the market, mainly Changsha Coal. The number of transfers from the Bohai Rim port dropped slightly, while the high throughput caused the port inventory to decline slightly. Affected by the rainy season, rainwater increased in most parts of East China, and the daily consumption of some power plants, such as power-on, declined. Affected by the unsuccessful customs clearance of imported coal, the amount of domestic coal purchased by power plants in southern China increased. The price of the pit is strong, and the restrictions on imported coal are still supporting the port prices.

Coastal coal market is expected to rebound slightly after Dragon Boat Festival

After the Dragon Boat Festival, industrial production in various regions resumed full production and resumed production, and daily consumption increased. It is expected that there will be a slight rebound in the Bohai Port market after the holiday. At present, the supply of main producing areas is limited, and it is difficult to alleviate for the time being, and the customs clearance of imported coal is still under control. The overall supply is in a tight state, and the inventory levels of ports and terminals are slightly lower than the same period, which is at the peak of coal consumption during the "peak summer" In the short term, there is still demand for replenishment. Although there will be an increase in hydropower after the flood season, the temperature will increase and the electricity load will increase. The coal consumption of power plants has risen to a high level, coupled with the continued restrictions on imported coal, there is still a demand for replenishment. It is expected that in July, coal prices will still have an opportunity to rise.


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