Coal price continues to decline and wait for coal power long term cooperation

In terms of production area, the coal market in Shaanxi and Inner Mongolia is slightly strong in supply and weak in demand, the transportation and sales in the mining area are flat, and the coal price has dropped 5-10 CNY/ton in a stable way. In addition, Xi'an Railway Bureau has recently pushed forward the reduction of some fire freight rates by 20-26%, and the long-term cooperative price of Shaanxi coal in April has dropped significantly compared with last month; Large and medium-sized mines in northern Shanxi continue to maintain long-term cooperative shipping and self-contained power plants, long-term cooperative household railway shipping is relatively stable, local mine sales and transportation are general, and coal prices are mainly weak and stable. On the port side, the inventory of Beigang port has been rising in recent years, but the demand for inquiry goods is low.

At present, the price of a small number of transactions is still falling significantly, waiting for the follow-up progress of coal power long term negotiation. At present, the main closing price of 5500 kcal power coal is 520-525 CNY/ton, and the closing price of 5000 kcal power coal is 450-455 CNY/ton. On June 6, the total inventory of the three ports around Bohai Sea was 2397.9 (+ 1.147) million tons, Qinhuangdao 6.82 million tons, 7 anchor ships and 18 ships in advance; Caofeidian port area 9.726 million tons, 1 anchor ship and 8 ships in advance; Jingtang Port Area 7.433 million tons, 2 anchor ships and 5 ships in advance. In the downstream, the current inventory of coastal power plants is high and the daily consumption is fluctuating, while the active inventory reduction of key power plants is effective, but the terminal demand of traditional power coal in the off-season is hard to be optimistic, and there is still room for the future port coal price to go down. As of March 29, China's key power plants have stored 75.92 million tons of coal, 2.99 million tons of daily supply, 3.47 million tons of daily consumption and 23 days of availability; on April 7, five coastal power plants have inventory of 14.838 million tons, 430700 tons of daily consumption and 34.5 days of availability. In terms of imported coal, affected by the deterioration of foreign epidemic situation and drastic changes in the external market, the international sea freight has been kept low, and the quotation of foreign mines has been temporarily stable, but the domestic traders basically have no operation, and there are few trading on pallets, while the coal market in the South continues to be flat, with stable prices and poor market trading. Now, the FOB price of 3800 kcal for Indonesian coal is $31.5-32.5, and that of 5500 kcal for Australian coal is $52.5-53.5.