Downstream demand is less than expected coal prices continue to decline

Production area, the overall market demand in Shaanxi and Inner Mongolia has not improved significantly. The transportation in Ordos, Inner Mongolia, hangs upside down seriously. There are only large mines on the platform for coal, few traders, mining area because of the obstruction of rainfall transportation, coal shipment is general, coal prices are stable as a whole. In Shaanxi, the price of coal increases and falls mutually. After the price reduction in some coal mines in the early stage, the inventory pressure has decreased, but the demand in the downstream is poor, and the support of coal price rise is not strong.

At port, there is a part of demand for low-calorie coal release in the market at present, but the demand for high-calorie coal is still very small, the activity of spot market is low, downstream purchasing pressure appears, in addition to high port inventory, low demand, individual bearish sentiment continues to increase, as of August 7, Qinhuangdao Port coal stocks 6.18 million tons, compared with last week. During the same period, it increased by 175,000 tons. Port power coal spot quotation (CV5500) is about 590 CNY/ton, (CV5000) is about 510 - 515 CNY/ton. On the downstream side, due to the recent typhoon, the temperature in coastal areas has been cool, and the daily consumption of power plants has fallen back to about 700,000 tons, while their own stocks have maintained a high level, and the Changxie coal cashier rate is high enough to cope with high temperature coal. As of August 8, the six coastal power plants had 17.3306 million tons in stock, 738.1 million tons in daily consumption and 23.48 days in usable days. In the aspect of importing coal, due to the insufficient terminal demand, the declining purchasing enthusiasm leads to a weak price decline, and the large fluctuation of exchange rate and the impact of customs clearance policy, traders are cautious in their operation. At present, the spot FOB price of 5500 Kcal power coal in Australia is about 50 US dollars per ton, while that of Indonesia (CV3800) is temporarily stable at 33-33.5 US dollars per ton.