Focus on Power Coal: Prices of Coal in the Origin Are Stable

On September 18, Mysteel Power Coal focused on: production area, near Daqing, frequent environmental protection and safety inspections of coal mines in the main production area, limited production in some coal mines, with the beginning of the decline in temperature, power plants and civil enterprises in northern areas have signs of early procurement, especially lump coal and low calorific value coal are relatively popular, and prices are rising steadily.

On the port side, the strong wind blocked the shipping these days, which led to the slow turnover of market capacity. At present, the coal market around the Bohai Sea port is relatively cold, coupled with the high price support of the origin, the actual transaction is low, while the Daqin Railway overhaul has less impact on the coal price, some traders have some pressure, and the quotation is stable, and the price of individual special coal is firm. At present, the mainstream quotation of power end coal (CV5500) is about 583-585 CNY/ton, (CV5000) is about 512-515 CNY/ton downstream. The inventory of six coastal power plants has dropped to less than 16 million tons, and the overall inventory digestion is slow. With the gradual decrease of high temperature and temperature, the cooling of weather, the load of power plants will also decrease, followed by the autumn inspection of power plants. At the beginning of repairs, the unit outage rate increased, the enthusiasm for high-price coal purchase was weakened, and the rigid demand for Changxie coal was maintained. As of September 17, the six coastal power plants had 15.8502 million tons in stock and 69.94 million tons in coal consumption, with 227 days available.

In the aspect of imported coal, prices are relatively firm recently, influenced by terminal procurement bidding and inquiry. However, due to the impact of exchange rate, high freight and anticipated tightening of customs policy, traders are more cautious in their operation and prices will remain low.