Coal prices welcome a turn for the better

After the coal industry of our country experienced a “stumble for almost a year” in the past year, it recently began to usher in price increases and some coal companies that have fallen into losses for a long time have been relieved. However, industry sources predict that due to factors such as overcapacity, the coal industry will find it difficult to step out of the downturn.

The coal-fired power, which has long been awaited by the industry, officially began trading on the Zhengzhou Commodity Exchange on the 26th. In the opening two days, the relevant contracts generally rose, among which the main contract TC401 for January delivery reached 546.6 yuan per ton, which was an increase of 26.6 yuan from the benchmark price. The two-day cumulative increase exceeded 5%.

Shenhua Group, as a market leader, has recently raised the price of some types of coal. The thermal coal below 5,000 kcal in coastal areas has been raised by 3 to 5 yuan per ton. In addition, several coal companies, including China Coal Group, launched their water in the northern port of China and also increased their prices.

The latest issue of the Bohai Bohai Thermal Coal Price Index (September 18 to September 24) showed that the comprehensive average price of 5,500 kcal thermal coal in the Bohai Rim region was reported at RMB 531/ton, which was lower than the previous reporting period. 2 yuan / ton, the recent decline has been continuously narrowed.

Experts believe that the recent rise in coal prices has a certain relationship with seasonal changes. The consumption of electric coal during the peak period of this year's electricity consumption was significantly higher than in previous years. The power plants recently carried out “restocking” and will continue to increase coal mining capacity in October to prepare for the upcoming warm season. "After restocking, our power plant's coal inventory can be used for generating electricity for 25 days," said Liu Quan, deputy director of Huaneng Dezhou Power Plant.

Liu Jie, the analyst of Zhuo Chuang Information Coal Industry Co., Ltd., said that the coal price had fallen to a low level in the previous period. Since the coal-burning power plant is active after the peak season and the Datong-Qinhuangdao line of coal transportation is about to be overhauled, it will help boost the current coal price.