Why does coal price rise under the low demand?

From the beginning of this week, a number of coal price indexes stopped falling, and appeared a small rise of 1 CNY/ton. According to the author's analysis, this round of coal price increase is limited. It is estimated that the increase will be about 3-5 CNY/ton, and the real coal price rise should be in the first ten days of September. Why will coal prices rise under the downturn in demand?

1. Futures rise. At present, the price of Zhengzhou Coal in 2009, the main contract, once rose to 579.2 CNY/ton, which was 20 CNY/ton higher than the current spot price. Some of the seller's customers in the port were affected by the futures, and their emotions fluctuated greatly, and they were strongly willing to hold the price. But the actual spot demand is weak, the inquiry is rare, and there are not many ships to pull coal from northern ports, so the coal price is not likely to rise sharply.

2. The price of coal in producing area has stopped falling and stabilized. This week, the decline in the price of coal production area significantly narrowed, and some areas even rose. Among them, Shaanxi and Inner Mongolia are restricted by coal management tickets, and the production capacity release is affected by the superposition of non-conforming coal mines, and the prices of some coal mines are rising. However, coal prices in Shanxi Province have been rising and falling each other, and the production and sales are relatively balanced. In the Bohai Rim port, part of the low sulfur coal is still in short supply, and traders are supporting the price.

3. The market coal price is lower than the monthly long-term cooperative price. At present, the coal trading price in the port market has been lower than the monthly long-term cooperative price of large-scale coal enterprises. The market coal price has a certain advantage. Under the circumstances of slightly warmer demand, the market coal inquiry increases, and the price rise is expected.

4. Coal storage of some small households has declined, especially in South China, where there is little coal import quota, some power plants are willing to replenish the coal storage. According to the recent coal storage situation of key power plants, it has decreased compared with the peak on July 29. Especially after the positive consumption in the first half of summer, the inventory in South China decreased more and the purchasing enthusiasm of some small and medium-sized power plants increased. After that, coal price is more important. This week, traders' willingness to lower prices and terminal wait-and-see price reduction coexist. At this time, the important role of price index is highlighted. Once the index rises slightly, it is possible to break the deadlock and cause a chain reaction, which will cause users to have a bottom reading heart and coal prices will rise.