Downstream Daily Consumption Rises and Port Demand in Origin Weakens

The overall demand of coal market in Shaanxi and Inner Mongolia was weak, coal prices did not support a big rise for the time being, individual coal mines reduced prices and engaged in promotional activities, but the sales situation was still not optimistic, some coal mines still had some inventory pressure, plus the enthusiasm of downstream traders to transport. At the same time, the demand for coal used by chemical and civil enterprises has declined, resulting in a downward pressure on coal prices. For wet coal and bubbled coal, the downstream counter-offer price is lower than the downstream counter-offer price. There are differences between buyers and sellers, and the actual transaction is less. The release of follow-up demand needs to be observed. At present, the mainstream quotation of CV5500 is 575-580 CNY/ton, (CV5000) and 500-505 CNY/ton.

On the downstream side, the inventory of the six major power plants in the coastal areas has dropped below 17 million tons, and continued to decline. In addition, after the typhoon, the temperature in eastern and southern China has risen, and the daily consumption of the six power plants has risen to 770,000 tons. As of August 16, the six coastal power plants had 16.617 million tons in stock, an increase of 1.78 million tons over the same period of last year, with daily coal consumption of 772,000 tons and usable days of 21.5 days. In terms of imported coal, the offshore prices of Indonesian and Australian coal are temporarily stable, the RMB exchange rate has broken 7 against the US dollar, and international shipping costs have risen, resulting in increased onshore cost of imported coal, more cautious purchasing by traders, lower activity of imported coal transactions and calmer market. Current FOB prices in Indonesia (CV3800) range from $31 to $31.5 per ton, while those in Australia (CV5500) range from $49 to $49.5 per ton.