This week's fall in Bohai Rim market prices will widen

According to the monitoring data, on May 24, China's coal price index (the national composite index) was 161.6 points, which was basically the same as the previous period.

Specifically, the Bohai rim market is declining gradually, the price of power coal in the producing area is beginning to show a weak situation, and the price of coking coal is rising slightly in part. On the port side, the current inventory of downstream power plants has reached a high level, but the growth rate of daily consumption is obviously not as expected, and the purchase of power plants is mainly based on Changxie Coal, which has less demand for coal in the market, low enthusiasm for purchasing, and big price divergence between supply and demand sides; on the production area, the pithead market has cooled significantly in the near future, showing a weak overall market, and the prices of some coal mines have been reduced. In the coke market, the coke price has begun to rise in the third round. With the rising profits, coke enterprises are more enthusiastic about coke coal purchasing. In some areas, the prices of high-sulfur main coke coal, lean coke coal and gas concentrate have increased slightly. In the later period, when the coke market continues to improve, the coke price rate has room to rise.

It is expected that the falling range of prices in the Bohai Rim market will be widened next week. Following the tariff reduction of Tanghu Line, the railway freight rate will also be lowered, and the market of superimposed origin will weaken. At the next stage, the cost of port transportation will decrease to a certain extent. On the other hand, the inventory of northern ports and downstream power plants will continue to occupy a high position, and will continue to passively accumulate inventory, while the daily consumption will hardly improve in the short term. The long cooperative window of superimposed month will be opened at the beginning of the month, and the downstream coal market will continue to accumulate. Procurement will not improve. In addition, from the current "cost reduction" policy orientation, next month's reduction of the CPPCC's probabilistic rate will also have an impact on the market price of coal. As of May 23, the total inventory of the four major ports in the Bohai Rim was 235.04 million tons, an increase of 433,000 tons over last week. With the reduction of railway freight, the enthusiasm of some shippers has been improved, and the import volume of ports has remained high. In the aspect of export, there has been a long period of strong wind blockade in all ports this week, which reduces the efficiency of ship operation, while the downstream is constrained by high inventory and low daily consumption. The enthusiasm of pulling and transporting has continued to decline, and the overall export volume of ports has been low. Under the background that the overall import is higher than the outflow, the overall inventory of the Bohai Rim Port has increased.

[East China] Prices in East China were relatively stable this week. Purchasing demand of downstream power plants is general, overall bidding price is low, coupled with insufficient driving force of coal price rise around Bohai Port, terminal incremental purchasing is very limited, and TRADERS'mood for North haul is low. Under the current situation of heavy wait-and-see mood, the overall price remains stable. 

[North China Region], supported by the third round of coke increase, the price of coking coal in some areas of Shanxi has been raised again. In addition, in recent years, the environmental protection inspections of coal mines in some areas have been frequent and involve over-production inspection items. The output of coking coal is relatively limited. The price of coking coal in some areas with high quality and shortage will continue to rise slightly, and the coking coal market will still run steadily, moderately and strongly. The price is stable as a whole. The prices of some coal mines in northern Shanxi are narrowly reduced due to the influence of the port market. Anthracite market has increased downstream construction, and now they are entering a stable situation as a whole. According to CCTD monitoring data of China Coal Market Network, coking coal prices in Linfen, Jinzhong and Taiyuan of Shanxi Province increased by 10-30 CNY/ton, and some kinds of coal increased by more than 50 CNY/ton. Power coal prices in Datong and Shuozhou of Shanxi Province decreased by 5-10 CNY/ton.

[Northeast and Eastern Mongolia] maintained a normal level of supply and demand, and prices were running smoothly.

[Central and South China Region] The power load oscillation operation of the power plant, the coal consumption decreased slightly compared with last week, the coal intake continued to show an increasing trend, and the overall inventory increased. As of May 23, the total coal storage capacity of the power plants in Hubei Province was 4.611 million tons, up 246,000 tons from last week.

[Northwest China] Shaanxi and Inner Mongolia are weak and stable in power coal. Affected by the high inventory in the downstream, Yulin has begun to reduce its price slightly this week. However, due to the shortage of coal pipe tickets at the end of the month, most coal mines are still conducting price sawing. The downstream inquiries mainly focus on low-calorie coal, and the demand for high-calorie coal is weak. The subsequent sales of high-calorie coal blending in Yulin will be affected. The overall coal price may show a downward trend. Influenced by the pessimistic sentiment transmission in the port market, the demand for downstream purchasing in Erdos region has weakened and pit price has been depressed.

[Southwest China] At present, the downstream purchasing demand is still good, and the coking coal price probability keeps stable, moderate and strong.