The decline of coal price in producing areas slowed down

On September 16, 2019, the 36th issue of China Taiyuan Coal Trading Price Index was released. The composite trading price index for the current period was 135.54 points, down 0.03% annually. Among them: power coal index 117.33 points, ring ratio fell 0.02%; coking coal index 170.34 points, ring ratio fell 0.06%; injection coal index 147.62 points, ring ratio was flat; chemical raw coal index 110.08 points, ring ratio was flat.

In this period, Shanxi's groundwater coal price rose slightly, while the direct coal price fell. The average daily coal consumption of the six coastal power plants in this period is about 69,000 tons, a decrease of 0.4 million tons annually, an average daily stock of 16.443 million tons annually, a decrease of 240,000 tons annually, and the days available for coal storage are about 23 days. Recently, the daily consumption level of downstream thermal power plants has been shaking down, and the stocks of power enterprises are still at a relatively high level, and the demand for coal procurement in the market is generally released. The pressure of local security inspection and environmental protection has increased, the supply of power coal market is expected to be tightened, the mindset of some users and traders has been strengthened, the trading situation of power coal market in northern ports has improved, and the quotations of some varieties have continued to rise slightly. Coal enterprises in the province generally have normal production and marketing, and price rises and falls alternately. In the sewage coal market, the price of some coal enterprises in Shuozhou increased by about 2-7 CNY/ton, while that of large coal enterprises in Changzhi and Jincheng decreased by about 2 CNY/ton per month, while that of some local coal enterprises in Jinzhong decreased by about 20 CNY/ton.

In this period, the price of clean coal boards for coking in Shanxi fell individually. In this period, the slab price and spot steel market continued to increase slightly, the profit of steel mills recovered slightly, the attitude of cracking down on coke enterprises was relaxed, and the coke price stopped falling and stabilized; the coke start-up rate and daily average output of coke enterprises declined slightly, the stock of coke and raw coal still accumulated, and the rhythm of replenishing storehouse of coke blending coal did not increase significantly; the refined coal used for coking in the province was not increased significantly. Market operation is stable and weak, coal mine production is normal, stock of raw coal and clean coal continues to grow, especially inventory of high sulfur and coke blending varieties is at a high level, sales pressure of coal enterprises is prominent, and some coal washing plants have shut down due to low profits. In this period, the price of clean coal used for coking by major coal enterprises and most local coal enterprises remained stable, while the price of lean coal by individual coal enterprises in Jinzhong region dropped by 40 CNY/ton.

The price of clean coal boards for injection in Shanxi has remained stable in this period. According to the sample statistics of 110 steel plants in China in this period, the stock of injected coal is 34.825 million tons, the circumferential ratio is increased by 46.4 million tons, the average usable days are 14.38 days, and the blast furnace operation rate of 247 steel plants is equal to that of last week, which is 0.23% higher than that of last year. Recently, steel prices rebounded, the stock of steel increased, and market confidence was boosted. The enthusiasm for replenishing the coal storage has been improved; the market for injection of clean coal in the province has been running smoothly, the output of some coal mines in Jincheng area has been reduced, the production of most of the other coal enterprises is normal, the market supply and demand are still loose, some coal enterprises have certain sales pressure, and the price of injection of clean coal for main coal enterprises and local coal enterprises in this period has remained stable.

The price of Shanxi anthracite block coal plate is weak and stable in this period. In this period, the demand for agricultural fertilizer in downstream urea market is general, the purchasing power of compound fertilizer plant is strong, and the bidding of Indian market is superimposed. The quotation of many enterprises continues to rise slightly; the downstream enterprises in methanol market mainly purchase on demand, and the inventory of some manufacturers is not high and the price is rising slightly; the downstream chemical fertilizer enterprises are on the lookout. The market of anthracite lump coal in the province has not improved, the sales pressure of coal enterprises still exists, and the price remains weak and stable as a whole.