Continuous High Temperature Daily Consumption Coal Price is expected to Rise

Shaanxi and Inner Mongolia coal prices are weak, but the sales situation has improved compared with last week. Coal mines in some regions rise and fall mutually. Some traders said that before the 70th anniversary of the Daqing, the environmental protection and safety inspection of the production area is more stringent, so civil lump coal and mining area parks have begun to be supplemented. Short-term pithead coal prices have some slight support.

On the port side, the price of northern ports began to stabilize after a slight increase. At the same time, the inquiries for 5000 cards of low-sulfur coal resources of medium and low cards increased, and some sellers began to wait for the price to rise. However, the downstream acceptance level was not high and the actual transaction was scarce. In addition, the port stock remained high and the decline rate was not obvious. The rising price of coal still has some suppressive effect.

On the downstream side, the recent high temperature weather in the South and some provinces and municipalities in China has continued, greatly increasing the demand for electricity. The daily consumption of power plants has risen rapidly to about 800,000 tons. As of August 26, the inventory of six coastal power plants was 16,735,900 tons; the daily consumption was 775,200 tons; and the available days were 21.58 days. Large-scale purchasing of power plants with high inventory is difficult, and periodic replenishment will still exist. In the aspect of imported coal, based on the possible adjustment of domestic customs policy and the high stock status, the demand for imported coal is low, and the bidding for power plants has temporarily stabilized. At present, the price of FOB in Indonesia (CV3800) is between US$30.5 and 31 per ton, while that of Australian coal (CV5500) is near US$49-49.5 per ton.