[SMM News] Coking coal futures rose nearly 7% in intraday trading and continued to hit a new high for listing.

SMM1 March 8: coal futures took off again in early trading today, during which the main force of coking coal rose nearly 7%, and Zheng coal rose nearly 5%. The current low temperature weather leads to continuous improvement in downstream demand, and the tight supply and demand pattern continues to support the rise in coking coal prices. As of press time, the main contract for coking coal rose 6.57% to 1817 yuan / ton.

Recently, due to the influence of cold wave and low temperature, the demand for thermal coal in many power plants and heating enterprises in Jilin, Shandong and other places has increased. The consumption of thermal coal in major power plants has gradually increased, and the coal storage in some power plants has reached the lowest warning line.

The supply side is still tight, near the end of the year, the safety inspection in some areas is strict, and the supply of some high-quality coal at the end of coking coal is reduced; due to the control of many ports due to weather factors, inventory in the southern region will be hindered, and the import of Australian coal will still be restricted. According to news from the Shanxi Provincial Energy Bureau yesterday, Shanxi Province will eliminate coal excess capacity and withdraw from 32 coal mines, including Shanxi Coal Transportation and Marketing Group Tianchidian Coal Industry Co., Ltd., with an output of 20.74 million tons per year in 2020.

It is also understood that the current downstream coke profits are high, coke enterprises have a high demand for replenishment. The day before yesterday, some coke enterprises in Shanxi, Shandong and Hebei opened the 12th round of increase, an increase of 100 yuan / ton. Up to now, this round of increase has basically landed in an all-round way. The continuous rise in coke prices has driven the profits of independent coke enterprises to a new high, with data showing that it has approached 800 yuan / ton, and the coke enterprises are willing to replenish the stock.

Huatai Futures believes that good demand is the reason for rising coal prices, with frequent cold waves and falling temperatures, while daily consumption of heating companies and power plants will increase. Most of the power plant inventory is at a historical low, some power plant inventory has been below the warning line, the need for replenishment is very strong, while the demand for coal in non-thermal coal enterprises has not declined, overall, the demand for thermal coal is still very large.