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Expected Transfer Traders' Willingness to Ship

ECHEMI 2019-08-12

DryDoQ-Insights

On the production area, the production of coal mines in Yulin area is normal, but the sales situation in the area is different: the sales situation of some mines in Shenmu has improved slightly, the coal price has risen slightly by 5 CNY/ton; the last coal and seed coal in some mines in Fugu are unsalable, and the coal price has been lowered by 5-15 CNY/ton under pressure. Coal Road Sales in Ordos were 1.57 million tons yesterday, down by 77,000 tons annually. In order to speed up shipment, some mines were sold at a reduced price of 10-20 yuan per ton. On the port side, inquiries were cold and the seller's willingness to ship goods was enhanced. "Summer in peak season" has been over half, and the demand downstream has not improved, the daily consumption increment space of power plants in the later period is not large, and the stock is still at a high level. Traders'expectations of future market decline, the tender sentiment fades, and the willingness to ship increases. At present, the mainstream quotations of power coal (CV5500) and (CV5000) are mainly index or below index. Some even float 5 yuan, but the downstream will to receive goods is not enough, it is difficult to conclude transactions. In terms of imported coal, the market of imported coal is relatively cold this week. Although the CIF of Australian and Indonesian coal to ports in South China is still lower than that of domestic coal to ports in South China, the advantage of imported coal price still exists. However, due to the high terminal inventory and limited demand, the FOB price of Australia (CV5500) and Indonesia (CV3800) this week are still lower than that of Indonesia (CV3800). Prices are running steadily.

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