Relaxation of environmental protection and production restriction

This week, the main producing area's power coal market is running steadily, moderately and weakly. Due to the weak demand for coal used in downstream power plants and chemical industries, it is difficult to increase the demand for power coal in the short term, and some coal mines have poor market sales and lower coal prices. In Yulin area of Shaanxi Province, coal price has fallen greatly, coal mine sales are not good, and inventory backlog is serious; Inner Mongolia coal mine output is limited and price is temporarily stable due to strict control of environmental protection and coal management tickets.

Port: This week, the port power coal market continued to be depressed, the volume of transactions was scarce, coal prices fell below 600 CNY/ton, and some TRADERS'willingness to ship increased, but due to the high inventory of downstream power plants, low daily consumption, weak replenishment willingness, and mostly to maintain just demand with long-term coal, purchase willingness was not strong, and transaction continued to be depressed. According to the guidance price of power coal in FengMine, up to now, the mainstream quotation of 5500 cards in port is mostly about 590 CNY/ton, while the mainstream quotation of 5000 cards in port is mostly about 510 CNY/ton.

Downstream demand: Inventory of downstream power plants continued to be high this week, with daily consumption hovering around 600,000 tons. There was no significant increase, and the available days were still around 30 days. High inventory and low daily consumption continue to restrain downstream purchasing enthusiasm, and it is expected that the short-term power coal market will be weak and stable operation.

Coke price is stable this week, but the voice of rising is very high and some downstream steel enterprises have accepted it. Driven by the obvious reduction of coke production in eastern and central China, the productivity utilization rate of coke enterprises has dropped dramatically this week, while the production restriction of environmental protection in Tangshan region has relaxed slightly, the start-up rate of steel enterprises has increased slightly, and trade. The steel enterprises began to replenish their warehouses in small quantities, and the coke situation was good. As of No. 19, the price of Linfen first-class metallurgical coke in Shanxi was 1850 CNY/ton; Tangshan quasi-first-class metallurgical coke in Hebei was 1910 CNY/ton; and Rizhao port quasi-first-class metallurgical coke was 2050 CNY/ton. From the basic point of view, the supply of coke is somewhat relaxed, but traders take advantage of this low price to inquire and purchase everywhere, waiting for the opportunity to hoard goods, which has greatly increased the demand for coke, while individual steel enterprises have begun to replenish warehouses appropriately when construction has improved, and the buying mood of the whole coke market is very exciting. Inventory of coke enterprises is declining sharply. After environmental protection relaxation in Tangshan area, coke market will benefit more. Therefore, this increase will probably fall to the ground, but the risk of coke market remains. We know that coke price rise is closely related to concessions of steel enterprises. At present, the profit of coke enterprises is about 50 CNY/ton, and the profit of steel enterprises'threads is 200-300 CNY/ton. Hot coil profit is about 100 CNY/ton. If the coke price rises this time, the profit of coke enterprises will return to the time when steel enterprises suppress coke. After the price rises, the interest of traders in bottom-reading will be greatly reduced. The real supply and demand of Coke will be on the table. At the same time, Shanxi environmental protection inspection, which is the focus of attention, will be paid attention to at present. Weak degree, when environmental protection expectations are over-consumed, the purchaser's mood will gradually cool down, the problem of supply exceeding demand will become increasingly prominent, of course, all of these judgments are expected to be environmental inspection or the case of such intensity. Overall, the coke price will probably increase next week in a weekly way, but in the long run, the pressure of the coke market is not small, and we will continue to pay attention to environmental protection inspection. This week, with the first round of increase of individual coking enterprises in Shanxi, coking coal market was boosted, coking coal prices stopped falling, individual coal mines in Changzhi and Linfen increased by 20-30 CNY/ton slightly. At present, Linfen Anze low sulfur main coke quoted 1530 CNY/ton. Local coal mines mostly execute pre-order, which is temporarily unrealistic. Inter-annual transaction; Changzhi low sulphur lean main coke ex-factory contains 1450 CNY/ton of tax, the output of coal mine has increased, and the market prices of other varieties are temporarily stable.

With the continuous expansion of the scope of the first round of coke price increase, the sales pressure of coking coal mines has eased slightly. This week, Caofeidian, Jingtang Port, Fangcheng Port, Qinzhou Port and Beihai Port orally issued a notice restricting import coal declaration. Due to the uncertainty of the late policy of import coal market, sea transportation is expected. The import coal market will continue to be weak, while the domestic coking coal market or with the first round of coke rising, the short-term coking coal market should maintain stable operation.