Coal companies raise coal prices to stabilize the coal market

China Coal Energy's coal price policy was introduced in August. The price of 5500 kcal coal and below will be raised by RMB 4/t, while the implementation of preferential and large-scale preferential policies will continue. China Shenhua and Yitai have also raised the thermal coal price in August. Shenhua's thermal coal price for each card rose by RMB 4/ton.

Analysts believe that large coal companies have raised thermal coal prices, and the coal market under falling conditions has shown signs of stabilization. In addition, some media reported that the coal industry is preparing to introduce support policies in the near future and adjust the import and export tariffs of coal. Supported by price increase and superposition policies, the coal index has increased by 15.38% since July 24.

Large coal companies raise coal prices

It is reported that on August 1st - 31st, the coal price of Changxie was Pingyi (5800 kcal) coal price was 535 yuan/ton, and no adjustment was made; Pingban/Ping8 (5500 kcal) coal price was 489 yuan/ton. , rose 4 yuan / ton, Pingsan (5000 kcal) coal price of 429 yuan / ton, up 5 yuan / ton. At the same time, *preferential policies and large-scale preferential policies continue to be implemented. Although China Coal's August price for long-term coal prices is similar to that for Shenhua, due to the high share of self-produced coal in China Coal, sales pressure is high.

Previously, China Shenhua's price adjustment information released on August 1 showed that the spot price of thermal coal in August was: 5,800 kcal, 529 yuan/ton; 5,500 kcal, 489 yuan/ton; 5,200 kcal, 453 yuan/ton; and 5000 kcal, 429. RMB/ton; 4,800 kcal, 409 yuan/ton; 4,500 kcal, 379 yuan/ton. Among them, the annual contract purchase volume is more than 5 million tons, and customers who have achieved 90% of the monthly cashing rate can enjoy 10 yuan/ton discount. Compared with the settlement price in July, the price of thermal coal for each of the Shenhua cards increased by RMB 4/ton. This is also the first time that Shenhua has raised the price of coal since May.

At the same time, the daily consumption of downstream power companies rose. As of August 4, the total daily coal consumption of coastal major power groups continued to rise to about 700,000 tons, which was significantly higher than the previous level of 600,000 tons. The available days for storing coal fell below 20 days to 18 days.

Analysts believe that as large-scale coal companies such as Shenhua and China Coal raised their thermal coal prices in August, steam coal prices, which have continued to fall, are now stabilizing and picking up. However, for the northern ports, whether or not it can actively and effectively digest stocks in August will be the real test of whether domestic thermal coal prices can begin to bottom out in August.

China Merchants Securities Research Report believes that after the decline in coal prices in the previous period, the coal industry is basically in full loss, and the coal price is short-term at the bottom. It is expected that the beginning of winter coal storage and the decline of hydropower, and the fourth quarter coal price is expected to rebound, if the production price is limited and the import is restricted, Will further support the coal price.

Launch limited production plan

In addition to stabilizing prices, Shenhua and China Coal have also started to introduce limited production plans. Wang Jinli, deputy general manager of Shenhua Group and chairman of Shenhua Sales Group, announced recently that Shenhua will reduce production by 50 million tons and reduce sales by 60 million tons throughout the year. Some analysts stated that after the reduction, Shenhua Group's pressure to complete its annual operating indicators will be greatly eased, and the sales strategy of the depressive sales promotion is expected to end earlier.

At the national level, the coal companies also actively supported them. Xu Zhimin, inspector of the Economic Operation Regulations Bureau of the National Development and Reform Commission, stated at the 2014 National Coal Trade Conference and Northeast Asia Coal Trade Fair that the NDRC is committed to promoting the reform of the coal market and recently coordinated the difficulties in the coal industry.

On July 31st, the National Bureau of Economic Development and Reform of the State Council and the Coalition of the National Energy Administration, the Department of Power, the State Administration of Coal Mine Safety Supervision Department, and the China Coal Industry Association jointly held the national coal industry work conference to tackle the difficulties. Production, restrictions on unsafe production, resolving excess capacity, and strengthening industry self-regulation have made specific requirements.

The policy level first optimizes and adjusts from the supply side, which helps to change the market's expectations of long-term supply and demand imbalances in the industry. On August 4, the State-owned Assets Supervision and Administration Commission issued the "Emergency Circular on Further Strengthening Safety Production", requiring coal enterprises to organize production according to laws and regulations, and small coal mines to speed up withdrawal. Recently, the China Coal Industry Association organized a symposium for 14 super coal enterprises, which formed some consensus. First, the total amount of control, the country's coal output in the second half of the year must be reduced by more than 10%; Second, reduce inventory, large-scale coal enterprises It should be reduced by 50% on the basis of the end of June; the third is to standardize coal imports; the fourth is to establish a self-discipline mechanism.

Analysts pointed out that the recent position and deployment of relevant departments showed that the government began to pay attention to the plight of the coal industry, followed by a systematic rescue policy.