Daily Consumption of Power Plants is Lower than Expected Market Emotion

On August 5, Mysteel Power Coal focused on: the coal supply in Yulin area of Shaanxi Province is relatively sufficient, and the number of coal-pulling vehicles in some mining areas has increased, but the overall procurement demand is general, and the decline of coal price is greater than that of individual coal mines. In Inner Mongolia, the recent frequent local rainfall, open-pit coal moisture is higher, coupled with foreign transport hindered sales. Coal prices in the producing areas fluctuate in a narrow range. Coals with different calorific values are subject to different market demands, and prices are differentiated between rise and fall. On the port side,

spot coal prices in northern ports are not sustained enough. Influenced by the weak downstream market demand, market transactions are scarce, port operations are mostly Changxie Coal. Traders are relatively pessimistic about the expected demand in the future and have a strong sense of pessimism. At present, the mainstream quotation of power coal (CV5500) is about 595 CNY/ton, (CV5000) 515-520 CNY/ton, and the individual quotation is down 1-2 CNY/ton. Expectations for peak summer season are gradually broken and coal prices are falling again. Spot coal prices are expected to fall or expand. As of August 4, Qinhuangdao had 6.2 million tons in stock (+13), 22 anchorage ships (-8), 25 ships (+5) downstream. On August 5, the six coastal power plants had 17.287 million tons in stock; daily consumption was 687.8 million tons; usable days were 25.13 days. At present, the daily consumption has returned to less than 800,000 tons, the load of power plants has not recovered as expected, the pace of coal procurement in the market is slow, the port high-calorie coal is almost unavailable, and there are fewer and fewer traders covering the price of goods.

The imported coal market is relatively cold. Due to the high terminal inventory and limited demand, the tender volume of power plant is less at the beginning of the month, and the coal price keeps running at a low level. At present, the small boat type FOB33-33.5 US dollars/ton in Indonesia (CV3800) and the Australian coal (CV5500) FOB50.5 US dollars/ton.