After the festival, coal prices in producing areas slowed down and downstream procurement rhythm picked up slightly

2022-06-07 0 By

After the release of the notice on further improving the coal market price formation mechanism issued by the National Development and Reform Commission in Document no. 303, a wave of wait-and-see sentiment did appear in the market of producing areas and the purchasing slowed down.During the Tomb-sweeping Day holiday, the overall coal price in the production area showed a slight decrease. In April, the coal pipe ticket was restored, and the coal mine which had stopped production without ticket resumed work. The production and supply situation improved, which was negative to the price.For example, the price of final coal and mixed coal in Shaanxi Shenshupan Coal Mine during the holiday fell by 30 yuan/ton respectively, and the price of 3-8 and 8-15 blocks fell by 110 yuan/ton accumulative total;Daliangwan coal mine all kinds of coal prices fell 50 yuan/ton;Changlebao coal mine all kinds of coal prices fell 50 yuan/ton;Ruifeng coal mine washed final coal, washed medium, washed 5-8, washed 1-3 seeds have reduced the price of 90 yuan/ton.Affected by the price reduction, during the Qingming Festival, downstream coal enterprises hold a wait-and-see attitude, in buy up not buy down under the influence of the overall shipments in the production area declined significantly.Yesterday was the first day of tomb-sweeping Day holiday, and the price decline in producing areas slowed down. Due to limited supply and rising demand, coal prices in some coal mines were slightly raised. For example, baluntu Coal Mine in Inner Mongolia implemented the latest price of No.9 extra large block at 545 yuan/ton at 22:00 last night, which was raised by 25 yuan/ton, and No.11 washed raw coal at 445 yuan/ton, which was raised by 25 yuan/ton.The price of washed pulverized coal in Cangou Mine will be raised by rmb15, including tax, to RMB650 / ton, effective from midnight on April 7.We have pointed out in the analysis report on the thermal coal market of the main producing areas in the last period that the implementation of the 303 document began on May 1, but with the expectation of government regulation and control, the implementation of the coal mine chief’s agreement may rise further in the future, and the purchasing pressure of power plants will be eased.At the same time, after April, the coal mine which had stopped production without tickets resumed production, and the production and supply situation improved. Therefore, all these factors are negative to the price of producing areas.Although the demand has been suspended due to policy reasons, the actual market demand still exists. After the price of some coal mines has been lowered, the phenomenon of vehicles queuing again appears.And because shaanxi area coal calorific value is higher, so even if press limit price is carried out, coal price also has larger floating space.Before the price increase showed linkage upward, so affected by market sentiment is also linkage downward, and no middlemen increase prices, so when the price is lowered to the acceptable range of the demand side, they will return to the market to purchase.For more in-depth market analysis, please subscribe to our thermal coal market analysis report and Coal Lake data Center.