Yulin high coal price is contradicted! Port coal price fluctuation and stability

Yesterday became the first day of Yushenfu's coal price rise and fall, with the decrease of coal-pulling trucks in production areas and the strong price of coal enterprises but relatively stable overall price adjustment; the high inventory of power plants and the coal-pulling of major mainstream customers are still dominated by long-term covalent prices; with the reduction of railway freight, the recovery of imported coal increases; the advantages and disadvantages of producing area limit and pressure of environmental safety inspection are intertwined and superimposed. The market disagreed on the forecast of the rise and fall of the coal market in the later period.

Because of the pressure of environmental protection combined with security inspection, the production of coal mine is mostly unstable and the output is small. Despite the strong price hike of coal enterprises, the business of coal mine in the producing area is not good at present. Especially after the price hike of coal mine again, there is a clear sense of resistance to high coal price customers, and the pulling coalmine has dropped sharply. Valuable market, downstream still hold a wait-and-see attitude. Market news shows that some coal mines in Ordos region of Inner Mongolia have increased their prices by 5-10 CNY/ton due to the tight supply of high-calorie pulverized coal, while others have reduced their purchases of power plants and lowered their prices by about 5 CNY/ton. Most of the coal prices are in a stable and wait-and-see stage. The prices of most mines in Yulin area of Shaanxi Province remained stable. A few mines adjusted their prices by 10-20 CNY/ton according to their own production and marketing conditions. Due to the excessive increase of coal price in the earlier period, the number of coal-pulling vehicles has decreased in recent days.

Price increase information:

Shenmu Dabianyao Coal Mine: Coal price adjustment at 12:00 noon on May 16, 2019, water washing medium block and seed coal increased by 10 CNY/ton, 815 block execution 610 CNY/ton, 38 block execution 680 CNY/ton, two or five seeds execution 660 CNY/ton, raw coal block execution 575 CNY/ton. Shenshuban Coal Mine: Coal at 12 o'clock on May 16, 2019 rose by 10 CNY/ton.

Zhongyuan Coal Mine: From 6:00 a.m. on May 17, 2019, 38 blocks and large blocks were increased by 10 CNY/ton, respectively, to carry out 420 CNY/ton and 470 CNY/ton.

Erlin Rabbit Coal Mine: At 10:00 a.m. on May 16, 2019, the unit price of Huineng No. 1 mixed block increased by 5 CNY/ton, the unit price of Huineng No. 2 washed coal increased by 5 CNY/ton, and the unit price of Huineng No. 2 watercolor coal slurry increased by 5 CNY/ton. Line 100 CNY/ton, Huineng No. 4 watercolor slime unit price rises 10 CNY/ton, implement 60 CNY/ton.

Since the lowering of the Huhhot tariff on May 15, the enthusiasm of shippers from the origin has been enhanced, and the number of vehicles approved by Huhhot has increased from 22 to 28, which will improve the tension of Gaokameng coal in the northern port to a certain extent. After the reduction of railway freight, some Mongolian coal shippers have the intention to increase the volume of transport, but said that if the demand continues to be depressed, the enthusiasm for transport is also difficult to sustain. A trader in East China said that Mongolian Coal (CV5000, S0.6) quoted 530 yuan, but Shanxi coal price was slightly lower, and our price of 527-528 yuan could be sold abroad.

An enterprise in Zhejiang indicated that the selling price of low sulphur coal (CV5000) was generally around 530 yuan.

A trader in Hebei said that a trader in Qingang sold 28,000 tons of Shanxi coal (CV5000, S0.8) at 532 yuan, a counteroffer at 528 yuan downstream and an actual transaction price of 530 yuan. Shanxi Coal (CV5500, S0.8) offers about 620 yuan, and downstream (CV5500, S1) offers 610 yuan.

Supported by the cost of Hong Kong, traders have strong price awareness, while the demand for electricity and coal purchases by end-users remains weak, which will restrict the upward space of coal prices. It is expected that prices will mainly operate with small fluctuations in the short term.