Coal prices in Inner Mongolia rose slightly in May

Reporters from Inner Mongolia Autonomous Region Price Monitoring Center learned that in May, Inner Mongolia power coal pit settlement prices continued to rise slightly. With the peak season of Southern Hydropower in June, the thermal power market is squeezed, and coal prices are expected to show a slight fluctuation downward trend. The data showed that in May, the average pit settlement price of power coal in Inner Mongolia was 222.60 CNY/ton, up 1.85% annually and 10.83% year-on-year. Among them, the average pit settlement price of lignite in the eastern region was 191.68 CNY/ton, up 18.09% year on year; the average pit settlement price of power coal in Ordos City was 276.67 CNY/ton, up 13.70% year on year.

It is known that in May, the main coal producing areas in the north were affected by safety inspection, the speed of production release was blocked, the low-level operation of production inventory, especially the coal supply shortage situation in Yulin City, Shaanxi Province, was serious. Most coal production was mainly to increase the covalent price and internal customers, reducing export, and some customers moved to Inner Mongolia to purchase, which boosted the local coal price. According to the analysis of insiders, in the short run, the security inspection of the coal industry will not weaken, the release of coal production is difficult to boost, and the coal supply will continue to be tighter. However, when the southern region enters the Meiyu season in June, hydropower will gradually usher in the peak season, which will squeeze the thermal power market and weaken the demand for electricity and coal. Coal prices in Inner Mongolia are expected to show a slight fluctuation downward trend.