Coal Market Recent Price Trends

Recently, despite the slight increase in coal prices in coastal areas, there has been no fundamental change in the market's loose supply and demand. It is expected that after the completion of the maintenance of the Daqin Railway, the national coal market will continue to face significant downward pressure.

Accelerated decline in coal prices Further losses in coal companies have increased Since August, domestic coal prices have diverged, thermal coal prices have held steady at the bottom, but coking coal coke prices have continued to fall. As the Daqin Line is facing maintenance in early September, it will probably last for about 20 days, which will have a certain impact on coal procurement. The weak operation of the domestic coke market still maintained a sharp decline. Although the thermal coal market has recovered steadily recently, the coal economy still faces two major pressures. First, downward pressure on the market is increasing, and secondly, the mining company's mining costs and financial pressures have gradually increased. The continuous shrinkage of the coal market will change the abnormal situation of the entire industry's profitability in the coal industry, forcing coal companies to step into a more benign development track.

Coal prices at home and abroad have shown a trend of divergence recently. As of October 15th, thermal coal stocks in Newcastle, Australia fell by 3.7% to US$82.5/ton, which has fallen by 11% in the past two months, while domestic coal prices have risen by 2% in the same period. Gradually, the international coal price has become one of the factors that curb the increase in domestic coal prices.

Domestic coal price trend and forecast analysis, the domestic thermal coal is running weakly and the transaction is good. In respect of the main producing areas, some coal mine prices rebounded and the post-holiday sales remained stable. In terms of ports, stocks fell slightly and coal prices rose slightly. Domestic coking coal has stabilized and rebounded, and transactions are fair. Domestic anthracite has been steadily rising, and the transaction status is good. The price in Guizhou Anshun increased by RMB 30/t. This year, new coal production capacity will surpass demand growth, and coal production is expected to exceed 3.7 billion tons. In 2013, the coal economy is still not optimistic.