The pressure of supply exceeding demand in coal industry is not small

On the upstream side, the procurement demand of inland power plants is not high, and the receiving prices have been lowered one after another, prompting the coal price of the production area to continue to fall. In northern Shanxi Province, due to the low demand of ports, the delivery of water coal is not good, while the purchase of surrounding users is limited, which makes some coal mines appear top warehouse and the price is under pressure. In Northern Shaanxi, affected by the low enthusiasm of users, the demand in the region is low, and the price is weak. In Ordos area of Inner Mongolia, the flow direction of power plants and ports around is not good, and the coal price in the production area is still in a downward process. In terms of ports, the downstream coal haulage volume to the port market is very small, mainly to cash in the long-term cooperative coal, and the coal hauling ships to the port continue to remain sluggish; except that there are 10 anchor ships in Huanghua port, the rest of the anchor ships are zero or a digit number. More than half of the berths in many ports are empty.

Because the quantity of coal transferred out from the ports around the Bohai Sea is sharply reduced, and the railway transportation is more normal, the inventory of the ports around the Bohai Sea is in the rising stage. As of yesterday, China's top ten coal ports around the Bohai Sea have a total coal storage of 25.01 million tons, an increase of 3.48 million tons compared with a week ago, and an increase of 8.24 million tons compared with the end of February. Recently, there is a rapid increase in coal storage in QinGang, which is approaching 7 million tons. On the downstream side, with the acceleration of industrial enterprises' resumption of work, the daily coal consumption has maintained a steady rise. Up to now, the daily consumption of six coastal power plants has risen to 550000 tons, and 29 days of coal storage and availability have been achieved; most of the power plants have sufficient inventory, mainly for destocking, with low enthusiasm for procurement. In some power plants, due to the large amount of coal stored on the site and the difficulty of unloading, the coal delivery rate of Changxie coal has decreased. In terms of ports, the port market continues to be weak, and the situation of supply exceeding demand is obvious. The number of ships in anchorage areas of northern ports has dropped to a historical low level, and the inventory has increased passively. Downstream users only have sporadic demand for coal from China and Qatar, but the price pressure of counter offer is very low; the seller is anxious to ship, and the price of coal continues to fall.

The follow-up infrastructure construction and key projects will be resumed gradually, the industrial operation rate in coastal areas along the river will increase, and the coal consumption of power plants will continue to rise slowly. In terms of imported coal, affected by the international epidemic, the demand is reduced, and the market transaction is cold. Some users will focus on the domestic market for follow-up procurement. After the closure, the impact on the domestic coal market is mixed. Fortunately, with the gradual weakening of the impact of the epidemic, the prevention and control situation has become better, and many enterprises and key construction projects have begun to return to work and production in an all-round way, especially the recovery of cement and building materials enterprises has accelerated, which will drive the increase of demand for coal; while the import of coal is limited, the domestic demand for coal has also been released. The worry is that with the rapid development of the overseas epidemic situation, major economies are facing the risk of economic recession, which will affect the relevant domestic markets; as a result, the rapid decline and contraction of foreign demand, many orders of foreign trade enterprises have been cancelled, and industrial power consumption has been affected. Due to the high inventory of power plants in South China, they are all actively consuming their own inventory; it is expected that in April, the coal shipment in the port around Bohai Sea will be difficult to increase. In May and June, the market situation is expected to improve, and the port coal throughput will rebound.