According to market news, Shenhua Group recently announced that the monthly prices of the CPPCC in June 2019 were all in a downward trend. Among them, the purchase of 1-5500 large-calorie coal was reduced by 21 yuan/ton to 599 yuan/ton, and the purchase of-5000 large-calorie coal was reduced by 10 yuan/ton to 513 yuan/ton.
Recently, the overall weakness of domestic power coal market is obvious, showing two weak situations of supply and demand. In the downstream area, in preparation for peak summer, the power plant has entered the stage of active replenishment. By May 26, the inventory of key power plants in China had exceeded 85 million tons, and that of the six major power plants in the coast had reached 1740 tons, which greatly exceeded the inventory situation in the same period last year, and even approached the peak value in winter. However, the relative daily consumption level is below the medium level in five years, which makes the market coal incremental procurement traceless. The data show that the daily consumption of key power plants in China has increased slightly, but it is still at a low level. The coal storage has exceeded 85 million tons. Under the low daily consumption, the supply of Changxie coal and pithead coal is sufficient. In addition, the importer's gambling market purchased Australian coal in March-April. Recently, the customs clearance has been completed. The overall supply exceeds consumption, and the inventory has risen rapidly.
As of May 26, the inventory of key power plants in China was 85.03 million tons, rising by 4.31 million tons annually, supplying 3.92 million tons of coal on the same day, consuming 3.31 million tons of coal on the same day, and storing coal for 26 days. On the other hand, on May 31, 2019, the inventory of the six major power plants in the coastal areas reached 17.487 million tons, the highest level since December 2, 2018, which is nearly 5 million tons higher than the same period last year; the daily consumption of 554,000 tons is about 200,000 tons lower than that of the same period last year; and the available days of coal storage are more than one month, which is 31.6 days.
The April data show that the consumption of electricity and coal has slowed down markedly. The growth rate of thermal power is -0.2%, which is the first negative growth since 2018. Although the overall growth rate of power generation has also declined in April, the substitution of hydropower, nuclear power and solar power is undoubtedly the main reason.Coal stocks in northern ports are also high. Port spot is facing continuous downward pressure under the double constraints of lower price at pit mouth and low demand.
As of May 31, the inventory of the four northern ports was 23.704 million tons, up by 194,000 tons annually. Due to the weak downstream demand, port shipment difficulties and less market transactions, the port inventory has continued to rise, and is now at a historic high level.
In addition, it is reported that recently the National Development and Reform Commission (NDRC) issued a message requesting large coal enterprises to reduce their annual price to 520 yuan/ton or to reduce their monthly price to yellow range. That is to say, the price of 5500 kcal power coal in Bohai Rim Port has dropped to less than 600 yuan per ton.
China Coal Industry Association and China Coal Transport and Marketing Association have recently put forward proposals to all member units to meet the peak of summer supply and price stabilization. Under this circumstance, it is also expected that the quotation of Coal Association, the head of large-scale group, will be lowered.
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