Why did the coal price rise for a short time?

From July 26, the price of power coal in Bohai harbor has risen. By July 30, the price of power coal in 5500 cards market has risen by 2 CNY/ton and that of 5000 cards by 3 CNY/ton. Coal prices at the port have fallen again since August 1, and are expected to continue to decline next week.

1. This round of coal price rise is mainly due to trader's bid

In fact, the fluctuation of coal price is mainly a small fluctuation trend, not a real price increase. After the arrival of high temperature and the increase of daily consumption of power plants, some traders were confident and began to bid up, driving the price of coal to rise slightly, while the real demand for coal did not rise. The main users of inquiries and purchases in ports were small enterprises such as chemical industry, and the haulage volume of power plants was not large. At the end of July, large coal groups lowered coal prices in August by 1 yuan per ton per year and 10 yuan per ton per month, which had an impact on the mindset of market traders. In addition, the market judges that the high temperature weather lasts until the first ten days of August, and by the middle and last ten days of August, the temperature may gradually cool down. The daily consumption of coastal power plants will not be at the level of more than 800,000 tons for a long time, which also brings some pressure to the coal market. 

2. Power plants are going out of stock.

Although the daily consumption of coastal power plants has risen to about 800,000 tons, which is basically the same as the same period last year and lasted for nearly a week, due to the excessive coal storage of power plants and timely replenishment, the total coal storage of the six coastal power plants remains at 17.47 million tons, and coal storage days are available. At a 21-day high. Despite the appearance of high temperature sauna weather in the south, it is an indisputable fact that the stock of power plants does not decrease but increase, and the enthusiasm of pulling and transporting is still weak. 

3. Users' low-price counter-offer

At present, downstream users are in the state of de-stocking, weak demand and pulling, and the market is not good enough; 26 anchor ships are laid down in Qinhuangdao Port, 7 anchor ships are laid down in Caofeidian Port, and 16 anchor ships are laid down in Huanghua Port, which is the main carrier of high-quality Shenhua Coal, and the number of anchor ships in the three major coal ports continues to be guaranteed. Hold low. Since Friday, TRADERS'expectations of high daily consumption of power plants and increased purchasing by customers have fallen short, and the awareness of bid-offer has begun to weaken. In addition, the demand for inquiries and purchases in the terminal market has weakened, and the counter-offer price is on the low side. 

4. The price of pithead coal is still falling.

The price of pithead coal affects and controls the trend of port coal price to a great extent. This week, the coal mine in Yulin area of Shaanxi Province is becoming weak and stable, and the coal supply is loose; Shenfu coal mine is generally shipped, and some small mines are still under pressure to reduce prices; Shanxi Jinbei coal mine prices are relatively strong, prices have not improved significantly, and most of the coal mines are mainly on the lookout. Coal shippers have difficulty in delivering goods, with cold turnover and worsening bearish sentiment. Some traders have begun to make low-price shipments by floating index.