Power Coal Supply Release Slow and Short-term Price Weak and Steady

Power coal supply releases gently and short-term price is weak and stable. On the demand side, daily coal consumption of coastal power plants has rebounded slightly, but the stock of power plants is still running at a high level. Power plants mainly consume stock, accompanied by partial replenishment. At the supply side, the price of coal from the producing area remains resilient under the background of limited supply increment and low inventory in the mine, while the price of coal from the port is weak and stable under the influence of high inventory and poor demand in the downstream. The trend of coal price increases or it still needs to wait for the centralized replenishment of the power plant in order to meet the peak summer. The coke fundamentals are tight at present. On the demand side, the coke consumption of steel mills increases, the inventory decreases, and the willingness to replenish the warehouse is more positive. There are tightening expectations at the coke supply side, but the impact of current supervision on coke production is still relatively small. Overall, coke supply and demand are tightening, and coke prices will remain strong in the short term. However, the current port coke inventory is still relatively high, and most of them are high-priced resources in the early stage. Follow-up coke price increases will promote the port inventory to enter the market, which may lead to high fluctuations in coke prices. It is suggested that the release of port coke inventory be continuously concerned.