Hunan Provincial Department of Commerce: 0.5% increase of coal price in Sept

According to the important means of production market monitoring system of Hunan Provincial Department of Commerce, the average price of coal sales in September in Hunan Province was 859.86 CNY/ton, up 0.5% from the previous month, the Hunan Provincial Department of Commerce said. The average selling price of anthracite is 884.83 CNY/ton, 1.2% higher than that of the previous month; the average selling price of bituminous coal is 834.88 CNY/ton, 0.1% lower than that of the previous month. According to the Department of Commerce of Hunan Province, the main reason for the price rise is that the coal production and transportation are restrained and the short-term supply of market resources is tightening due to factors such as environmental protection and safety supervision and control, rather than demand is optimistic. In September, the coal market of Hunan Province mainly presents the following three characteristics: first, the total supply of the market is declining, and the supply pressure has eased. The State Administration of coal mine safety has issued the notice on the comprehensive supervision of coal mine safety production, and the security inspection has been strengthened. In particular, as the National Day approaches, all kinds of coal mine inspections continue to be strict, passive and active production reduction or shutdown of coal mines have increased, coal supply has gradually tightened, and the growth rate of coal production has decreased.

The second is the expected increase of demand decline. First of all, with the end of peak coal consumption in summer, the pace of end-user procurement gradually slows down. Secondly, at present, the growth of real estate investment is slowing down, manufacturing and infrastructure investment is in a downturn, cement, chemical industry and other industries continue to stagger peak production, industrial power consumption is difficult to improve, industrial demand has declined significantly, and industrial coal demand is also affected. Moreover, in September, some power plant units began to be overhauled, and the demand for coal further weakened. In addition, the growth rate of new energy power generation is increasing, and the role of thermal power substitution is increasingly apparent. It is undeniable that thermal power accounts for most of the total power generation, and it will not change for a long time, but new energy substitution is gradually playing a role, causing a certain impact on the demand of coal market. The third is that the high stock of the downstream coal enterprises is normalized, which is conducive to the price stability of the coal market.

According to the Department of Commerce of Hunan Province, the price of coal market in October is greatly affected by the following two factors: first, the demand for coal is weakened. First of all, the current global economy is facing great uncertainty. Domestic economic growth is under pressure, which restricts the growth of industrial power demand. The growth rate of total power generation is declining, which directly restricts the demand for power coal. Secondly, the coal consumption of power plants fell back in the traditional off-season. This year, the inventory of power plants has been higher than the historical level of the same period, and it is more likely to reduce the storage and pressure in the later period. The second is the overall abundant market supply. Since May, the coal output of the whole province has been released obviously, which shows that with the gradual release of compliance capacity, the supply gap caused by strict control of over production and other factors has been basically made up, and the coal supply is still at a relatively abundant level. With the release of environmental protection and safety supervision and control after September, although some coal mines are still shut down, the overall production capacity in October will be higher than that in September, and the market supply is in a state of oversupply. To sum up, it is difficult to see a significant improvement in downstream demand and a relatively abundant supply pattern that will still suppress coal prices. October is the off-season of traditional coal consumption, and it is expected that the coal market price will be under pressure in October.