Maintaining Weak Supply and Demand in Coal Market

The increase of crushing ships in the ports around the Bohai Sea is mainly due to heavy rain in the north, blockade of the Daqin Line for three hours, and the influence of 110,000 substation accidents in Qingang, resulting in an increase in crushing ships. Traders, due to the cost inversion and the reduction of coal shipments, have also maintained a low entry level on the Daqin and Mengji lines, and the supply and demand of coastal coal markets are both low.

Entering August, the shipment volume of Bohai Rim Ports did not increase and continued to hover at a low level. Coal shipments around Bohai Sea ports accumulate at terminal ports 2 and power plant sites. In addition, due to persistent rainfall, red light belt and other factors, the Daqin Line was blocked at 4:40-7:30 on the 5th, which resulted in the inability of Hudong Second Event to start normally and the delay of arrival time, affecting the Daqin Line's transport volume. Coal ports around the Bohai Sea are also affected. Rainfall for several consecutive days and the phenomenon of port collapse occur, mainly in the low dam foundation yard. Coal collapse and buried tracks affect the running and operation of large machines. In addition, at 17:10 on August 7, 110,000 substation high-voltage cables, which are responsible for power supply for 679 Company in East Port Area of Qingang, caught fire, and about 40 power cables and control cables were damaged, resulting in power outage on site, and the daily and night shipment volume of Qingang was reduced to 220,000 tons; by noon on August 8, the unloading lines of seven companies had been restored and the loading lines had not yet been completed. Sixth and ninth companies have not resumed production, and are expected to resume the whole line on the 9th night. The accident resulted in at least 1 million tons less coal transported in Qingang, and subsequent coal-pulling vessels were forced to anchor underground.

In view of the phenomenon of stacking collapse caused by continuous rainfall, the main coal ports strictly implement the duty system in flood season, implement the leadership system, and organize manpower and material resources for emergency rescue. On the one hand, pumping is carried out in the yard 24 hours without stopping. On the other hand, organize workers to enter the yard and clean up the track coal accumulation. Railways and ports were hit by heavy rains and the impact of accidents, resulting in a sharp decline in coal imports from shipping ports. In terms of shipment, it is also unsatisfactory. Because of strong winds and surges, the maritime department is blocked, which also affects port shipment, resulting in a decline in shipment volume and a double-low situation of inward and outward transfers in port transportation.

In the first ten days of August, it is in the second half of summer, and there is no sign of improvement in the coal market. With the typhoon coming, the temperature dropping and the coal demand worsening, the daily consumption of the six coastal power plants remained around 700,000 tons, down 100,000 tons from last week's peak. Depending on high inventories and the expectation that the peak season will come to an end, coastal power plants will maintain rigidity in purchasing ports around the Bohai Sea.

In the case of port coal prices continue to decline, downstream users mainly rely on the rigid pulling of Changxie Coal, and port transactions are scarce. In the latter half of summer, the market did not improve, and the mentality of "buying up or not buying down" appeared. Users were not eager to pull coal to replenish their warehouses, but waiting for the price of coal to continue to fall.