Weak demand for power coal and hard to change policy news boost market sentiment

Affected by the epidemic situation at home and abroad, the coal market entered a continuous decline mode after the adjustment of shocks, the time for coal mine production to return to normal level was significantly faster, while the overall demand was sluggish, the expectation of obvious recovery of industrial power consumption was broken one after another, and the situation of loose supply and demand suppressed the coal price. The price of water coal in the port market has successively fallen below the benchmark price of the long-term association and the long-term association, and then broke through the green range and entered the blue range. At present, the decline has not stopped. With the continuous decline of coal price, the market news about price stabilization and control increased significantly this week, and the response of the market driven by funds was more volatile.

On the afternoon of April 14, a roof fall accident in a coal mine in Shanxi Province boosted sentiment, and market participants were cautious and safe. The data of imported coal in March released this week exceeded expectations. This year, the voice of import control has been frequently heard since February, and the coal import volume in March is not low. The total import volume in the first quarter is up to 95.78 million tons. According to the idea of horizontal control, more efforts will be made later. Therefore, the news of import tightening has also increased recently. It is said that Guangzhou Customs has suspended the customs declaration of imported coal. In addition, the news about the price stabilization meeting was basically confirmed. On April 17, cci5500 price was suspended from being released to the outside world, and there were more initiatives on coal enterprise production reduction in the market, which generally boosted the market after the continuous fermentation of pessimism. However, the current market situation is still weak, and the situation of loose supply and demand can hardly be reversed for a while. This week's news of Price Stabilizing regulation has temporarily boosted sentiment and stabilized mentality. Whether there is further regulation and production reduction can be implemented or not needs further attention. The subsequent trend of coal price still depends on the change in the real quality of supply and demand.