Power plants continue to consume stocks and port coal prices rise slowly

Recently, due to the impact of rainfall, the daily consumption of Zhengneng Power Plant dropped to 138,000 tons, which was 22,000 tons lower than the peak of the previous few days, and the daily consumption of six coastal power plants also dropped from 824,000 tons to 759,000 tons. Over the past two days, coal prices in the port market have remained in a state of stalemate, with little fluctuation and basically stable operation. At present, it is at the peak of using coal for electricity, and the daily consumption of power plants is still likely to rise further. Shanxi, Inner Mongolia and other coal enterprises and traders have bid hard, according to the price index slightly floating supply; but downstream users are not easy to follow suit, relying on high inventory and stable Changxie coal, low-cost imported coal, not eager to buy large quantities of coal; but continue to lower counter-offer prices, relatively high market coal procurement. Desire is not strong, price rises slowly.

The next round of rainfall is coming. It is difficult for the six power plants to maintain daily consumption above 800,000 tons for a long time, and the high daily consumption is difficult to sustain. Some users are weak in the follow-up market. In addition, near the end of July, Changxie coal is still the main cash flow downstream, and the release of spot market demand is slow.

is still unfavourable to the rise of coal price. The main power generation enterprises, including the six major power generation enterprises in coastal areas, as well as the major sewer ports, such as Qinhuangdao Port, Caofeidian Port, Jingtang Port and Huanghua Port, are in a high inventory state in a large number of downstream receiving and unloading ports. Under the strong landing of imported coal in the southern coastal areas and the rigid pulling of Changxie coal, the high stock status of power coal will not be effectively digested soon. The high stock will suppress the rebound of spot power coal prices in the coastal areas. It is unlikely that coal prices will rebound substantially between the end of July and the beginning of August.

Railway coal transport capacity to Hong Kong has increased this year. Except for the slight decline of Daqin line, Shuohuang line has maintained a small increase, while Mengji line has become the largest railway. In the first half of the year, the railway coal transport capacity has been relaxed under the situation of insufficient demand in the downstream and weak industrial power consumption. The Hohhot Railway Bureau lowered the coal transport price of Tang-Hohhot line and the pithead coal price of the origin decreased, which alleviated the upside-down phenomenon between the cost of power coal arriving at port and its sales price. In July, the number of Coal Transported upstream from Inner Mongolia increased dramatically, the stock rebound of Qinhuangdao, Caofeidian and other ports around the Bohai Sea accelerated, and the shortage of high-quality coal was alleviated.

Imports of coal are not ambiguous. In the first half of this year, 154 million tons of imported coal were imported, an increase of 5.8% over the same period last year. Since this year, although China has taken measures such as prolonging customs clearance time for imported coal, increasing inspection and inspection to restrict imported coal entering the domestic market in order to alleviate the pressure of oversupply in the domestic coal market, the number of imported coal waiting for customs clearance at the main receiving and unloading ports still exceeds expectations. In July, China's imported coal is expected to remain at a high level, which will have a negative impact on the coal market in August and the domestic trade price of power coal in the near future.