Focus of this period: since April, the price of power coal has fallen rapidly. Because the demand is really not good, there is no way to see how much it will stop falling. Now, one of the few good news is that the country will focus on reducing the production capacity of coal mines with rockburst and coal and gas outburst, involving the production capacity of 700 million tons / year. According to the big data of China coal, a think-tank today, the price of QinGang 5500 fell from 535 yuan / ton to 491 yuan / ton in the first 16 days of April, and there has been a drop in the price below 480 yuan / ton, which is indeed a bit alarming, and is about to touch the 470 yuan / ton control line. In recent two days, the market has been spreading that in order to prevent the coal price from falling too fast, the national development and Reform Commission should control production capacity and limit imports.
However, prior to the launch of the national development and Reform Commission, the office of the Security Committee of the State Council had already launched a new effort to verify the production capacity of rockburst mines and coal and gas outburst mines in accordance with the principle of "only reducing but not increasing, simplifying the process, and centralizing quickly". Of course, the purpose of this is to contain coal mine accidents. Today's think tank noted that in the notice of the office of the safety committee of the State Council on scientifically determining the production capacity of coal mines with serious disasters to prevent and contain major accidents in coal mines, from April to July 2020, the provincial safety committee will take the lead, the provincial competent department of coal mine production capacity will work with the coal mine safety supervision and supervision department for specific implementation, and the state-owned assets management and other relevant departments will work together With the same participation, scientifically determine the mining intensity of normal production rockburst mine and coal and gas outburst mine, re determine the production capacity of "two types" coal mines, and clean up the illegal nuclear production projects.
According to statistics, the current capacity of rockburst mines is about 400 million tons / year, and the total capacity of coal and gas outburst mines is about 300 million tons / year. Last year, the national development and Reform Commission issued a notice on strengthening the control of the source of coal mine rockburst, which requires the production capacity of some rockburst and coal and gas outburst mines to be reduced by 20%. If this work is completed on schedule in July this year, the coal production capacity to be reduced is expected to exceed 100 million tons, then the problem of oversupply in the coal market can be basically solved. However, it is far from being thirsty. Today, the think tank believes that the top priority of the state's macro-control department is to require coal enterprises to reduce production appropriately, and at the same time, further tighten the import of coal, so as to restore 5500 kcal power coal price of the port around Bohai Sea to a reasonable level of more than 500 yuan / ton as soon as possible.
Delivering the latest product trends and industry news straight to your inbox.
(We'll never share your email address with a third-party.)
Market Analysis - Monthly Report - June, 2020 - Food & Nutrition
Market Analysis - Monthly Report - June, 2020 - Potassium sorbate
Market Analysis - Monthly Report - June, 2020 - Xylitol
Market Analysis - Monthly Report - June, 2020 - Xanthan gum
Market Analysis - Monthly Report - June, 2020 - Vitamin B6
Market Analysis - Monthly Report - June, 2020 - Fine Chemical