SMM Network News: as the port coal price approaches the red range, the risk of regulation and control increases. In addition, Huaneng, national energy and other demand units strictly control the purchase of coal in the high-priced market, and the market bullish sentiment has cooled somewhat. In July, the coal in and out of the port around the Bohai Sea remained double high, the coal turnover accelerated, the follow-up forecast of ships did not increase significantly, the phased pulling and transportation came to an end, and the purchasing enthusiasm of the lower reaches was weakened.
Port coal prices are approaching the red range, the atmosphere of market negotiations has cooled, the release of new pallets is insufficient, and users are unable to send a large number of ships to pull coal. Since Wednesday, bullish sentiment has cooled, wait-and-see sentiment has increased and trading has slowed. Sellers often quote flat prices by index, while downstream buyers are willing to reduce prices, and most of them use index leveling and floating delivery.
Recently, there are more bidding orders in the stage of electric power enterprises, but most of them are mainly low-cost long-term associations. And the main shippers are also mainly to meet the terminal demand, the intermediate link is reduced. The upward exploration range of coal quotations on the supply side of the market has narrowed, while there are differences in expectations in the market. Some traders believe that although from the analysis of the number of coal vessels arriving at the port and the daily consumption of power plants and coal storage, the upstream supply will not be released in large quantities for the time being. However, the storage of coal in the port around the Bohai Sea is not high, and it is an indisputable fact that the superimposed coal import measures are still strict. In the later stage, the market is still expected to operate strongly, and the purchase of power plants will still mainly rely on domestic coal. Therefore, traders are not eager to reduce the price, but continue to maintain the desire to keep the price up. Downstream, it is generally believed that hydropower recovery is rapid, superimposed power plants continue to have high inventory, most of the main power plants store coal in about 25 days, users are not short of coal, and the enthusiasm of dispatching ships is not high. And the behavior of buying coal in the high-priced market has decreased, and it is impossible for coal prices to continue to rise sharply.
With the port coal price close to 600 yuan / ton red gate, the power plant is not strong enough to purchase coal in the market. At the same time, there has been continuous rainfall in East and South China, the load performance of power plants is mediocre, and the daily consumption of six major coastal power plants is maintained at 63-640000 tons. While the increase in the coal price index has narrowed or even flattened, leading to an increase in the willingness of some traders to ship goods, individual coal with high sulfur content is sold according to the index float of 2 Mel 3 yuan / ton, and the market wait-and-see mood heats up.
In the first ten days, it continued to rain in the south, and most of the superimposed power plants were pulled and transported by the long Association, which helped the effective accumulation of power plant inventory. There has been an increase in coal storage from unified power plants, key power plants to coastal power plants. At this time, the daily consumption of power plants has not increased significantly, the use of cement coal has also decreased, and the peak of coal consumption has not yet arrived, prompting market sentiment to cool down, and the price of coal in the port market has once again reached an impasse around 600 yuan / ton.
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