Near 70 years of Daqing, coal market performance is different!

This week, the price increase of power coal in the main producing areas narrowed, and the power coal market in the northern ports ran smoothly as a whole.

After the concentration of coal prices in the early period, the prices of most coal mines in Yulin, Shaanxi Province, remained stable. Under the influence of the downstream coking, chemical, building materials industry shutdown and production restriction, the overall demand for coal was weak, and the driving force for coal prices to continue to rise was insufficient. In most coal mines in Ordos, the price of pulverized coal is stable, and the price of individual washed pulverized coal is reduced by 5 CNY/ton. Driven by civil demand, the price of lump coal is stable, moderate and strong. Before the Mid Autumn Festival, the price of lump coal in a certain mine in Yiqi is increased by 15 CNY/ton to 465 CNY/ton. On the northern port side, with the decrease of temperature and the start of unit maintenance in some power plants, the demand for coal used by major coastal power enterprises has turned to decline, but coal prices are temporarily stable due to the rising coal prices in the producing areas and the support of transportation costs. At present, the mainstream flat warehouse price of 5500 big calorie coal is 585-590 CNY/ton, and the mainstream flat warehouse price of 5000 big calorie coal is 515-520 CNY/ton. Near the National Day coal mines and downstream enterprises have a downward trend in start-up rate, coal supply and demand will show a weak situation, coal prices are expected to oscillate slightly in the short term. This week, the coking coal market in China continued to be weak. Since September, the whole coking coal market in China has been under great pressure. Affected by the continuous shrinkage of demand, coking coal prices in Shanxi, Shandong, Inner Mongolia and imports have fallen generally. In some areas, the monthly decline has exceeded 100 CNY/ton. The downturn of coking coal market, whether high-quality coking coal or blended coking coal and high-sulfur coking coal, the overall pressure of the market spread over a wide range and lasted for a long time. After the supply-side structure reform in 2016, the situation of coking coal market is the most severe one. Later coking coal market weakness will continue, from now to the end of the coking coal market situation is not very optimistic, prices still have downward space. First, on the supply side, although the security inspection of coal mines will be strengthened near the 70th anniversary of the founding of the People's Republic of China, it has limited impact on coal mine output, most coal mine production remains normal, and the supply side has not significantly reduced. Secondly, on the demand side, the shrinkage of coking coal market from the demand side is very obvious. On the one hand, it is related to the increasing capacity of coking to remove production, on the other hand, it is related to the low profit level of coking plant in steel plant and the constant attempt to suppress the price of coking coal.

This week, the domestic anthracite market is mainly weak and stable, and there is no obvious fluctuation in the market.

In mid-September, coal mines in Shanxi and Hebei, the main producing areas of anthracite, have a wait-and-see mentality. In terms of supply and demand, downstream users have increased their enthusiasm for purchasing civil coal in recent years. Some coal mines indicate that the pace of mid-lump coal transportation is faster, but the downstream chemical and metallurgical industries have not significantly changed their demand for anthracite, and the demand side is as a whole. The support to the market is limited, and the supply side, in addition to some coal mines due to moving, overhaul and other factors affecting the production of abnormal, most mines maintain normal start-up, the current supply-demand relationship of anthracite coal market remains loose. For the future market, under the situation that it is difficult to change obviously at the demand side, whether the coal price can rise depends mainly on the change of output at the supply side. It is expected that the anthracite market will remain weak and stable in the short term, but in the later period, with the recent announcement of Jincheng Emergency Management Bureau on strengthening the safety production of coal mines during the Qing Dynasty, if the environmental protection and security inspection of the production areas become stricter in late September, anthracite production will continue to shrink, it will not be excluded that there will be an increase in anthracite prices in local coal mines.

This week, the domestic injection coal market has maintained a stable trend. Mainstream coal prices are mainly stable, while sporadic coal market fluctuates slightly.

In mid-September, most of the mainstream mines in Shanxi, Hebei and Henan provinces have normal production. Although some downstream factories began to increase their stocks appropriately to improve the pace of coal injection transportation, considering the impact of the 70th anniversary celebration, due to the general profit level of steel enterprises at the present stage, steel factories have a strict expectation of environmental protection and production limitation in the later period. The demand side has limited support to the market as a whole, and the sales of some coal mines, especially the mainstream mines with large output, continue to be under pressure. At present, there is a strong wait-and-see atmosphere for coal in the market. This week, apart from a small increase of 15 yuan per ton in the price of smokeless coal injection from some steel plants in Hebei, the purchase price of coal in most steel plants in North China and East China has remained stable, and now the market is mainly on the sidelines for the time being. In the short term, except for the possibility that the price of coal injection in some local markets will rise slightly due to transportation constraints, the overall market of coal injection lacks the driving force for growth. For the late trend of coal injection, we need to continue to pay attention to the impact of environmental protection, security inspection and other factors on the upstream and downstream of coal injection and transportation before National Day.