Unescapable magic spell, power coal prices fall again

Since August, when some spot traders are still bullish, the price of power coal in Bohai harbor has fallen again due to the double effects of price reduction of large coal enterprises and daily consumption decline of coastal power plants.

According to the guidance price of power coal of today's think tank Feng Mine, on August 6, the FOB guidance price of three northern ports (Caofeidian, Qinhuangdao and Huanghua Port) was 5500 cards 591-592 CNY/ton and 5000 cards 514-515 CNY/ton. This is the fourth consecutive day since the Bohai Rim Port power coal prices began to stop rising and fall on August 3. However, the overall decline is not large, compared with the previous high, 5500 kcal power coal fell 5 CNY/ton, 5000 kcal power coal fell 4 CNY/ton. The price trend is basically consistent with today's think tank forecasts. As early as a week ago, when the trend of power coal in the harbor around the Bohai Sea was relatively strong, today's think tank's first article on July 31, "How much can the price of power coal rise when high temperature strikes?" Medium-calm analysis shows that the most likely price of power coal around Bohai Port will still be the same as last year, and the price of power coal will probably reach 605 CNY/ton up to 5500 kcal. Unexpectedly, the price began to fall before it broke 600 yuan per ton.

Analysis of the reasons for the decline in coal prices, the most important reason should be related to the large coal enterprises to reduce the monthly long-term covalent price. Although the price of 5500 calorie power coal is still fixed at 599 CNY/ton, the price of 5000 calorie power coal has been reduced by 10 CNY/ton. It is not surprising that spot prices fell at the beginning of the month when the CPPCC was fully honoured. Declining daily consumption of coastal power plants and high plant inventories have also undermined TRADERS'confidence. From the point of view of the drop in crater prices, the high supply is also one of the reasons for the drop in coal prices. As far as the future market is concerned, today's think tanks do not think too pessimistic. Although the autumn will start on August 8, the weather will cool down and the daily consumption of power plants will increase, with the approaching of the 70th anniversary of the founding of New China, the supply side may shrink more than the consumer side, and the possibility of fluctuating operation of power coal prices and overall weakness is greater.