Steam coal prices rose 9 weeks in April

The latest issue of the Bohai Bay thermal coal price index was released on May 18. The data shows that the domestic thermal coal price rose for the 9th consecutive week, and the increase was widened. With the continuous rise of thermal coal prices in the domestic market, imported coal has once again been favored by the market. According to the latest data from the General Administration of Customs, the import of thermal coal in China rose by 22.65% in April.

The latest issue of the Bohai-Range thermal coal price index rose again this week, which is also the 9th consecutive week of the index's rise, and the increase has increased. The data shows that the comprehensive average price of 5,500 kcal calorific steam coal at the ports of the Bohai Rim area is 827 yuan/ton, and the price of 4,500 calories from Qinhuangdao kcal thermal coal is 630 yuan to 640 yuan/ton, and 5,000 kcal calories Thermal coal prices range from 730 yuan to 740 yuan per ton, 5,500 calories for thermal coal costs 825 yuan to 835 yuan per ton, and 5,800 calories for thermal coal costs 865 yuan to 875 yuan per ton.

The average price of Bohai Bohai steam coal rose by RMB 7/ton from the previous period, which was an increase of 0.85%. In addition to the 5800 kcal thermal coal price, Qinhuangdao Port coal prices rose by 10 yuan/ton, while the remaining coal prices rose by 5 yuan/ton, again refreshing the high value in the past two years. The current Bohai Bohai thermal coal price index shows that the market supply and demand of thermal coal in the region continues the "seller market" characteristics, supply and demand continue to remain active, and the trend of market thermal coal transaction prices between different ports has diverged. However, prices in major coal-producing areas such as Shanxi and Inner Mongolia remained stable for two weeks in a row. The coal price in Shanxi was unchanged from last week. According to the Qinhuangdao Coal Network price channel, Datong's 5500, 5800, and 6000 kcal calorific power were displayed. Coal prices were 670 yuan / ton, 690 yuan / ton, 720 yuan / ton, unchanged compared to the previous period, while coal prices in Inner Mongolia remained stable overall. Obviously, the increasingly severe “power shortage” situation has further aggravated the market’s expectation of rising thermal coal prices, and has also become the main reason for the increase in thermal coal price increases in the current market. In particular, some domestic inland provinces and provinces have restricted coal outbound measures, disguisedly increased demand for coal resources in the Bohai Rim region from coastal consumer regions, and even promoted the scale of imported coal for power companies.

According to the latest statistics from China Customs, China’s coal imports in April were 11.1 million tons, a decrease of 2.42 million tons year-on-year, a decrease of 17.9%; however, the import volume of 9.05 million tons increased by 22.65% in March, and coal imports picked up significantly. Prior to this, due to slow recovery of Australian coal mines and the impact of high international coal prices, major provinces and ports such as the South have shifted their coal demand to domestic markets, which has helped boost domestic coal prices.

It is worth noting that the narrowing spread of coal prices at home and abroad is also an important reason for power companies to favor imported coal. Recently, with the fall in international oil prices, international thermal coal prices have also shown signs of decline, and the spread of coal at home and abroad has continued to shrink. As of May 13, the thermal coal price in Newcastle, Australia, was 118.74 U.S. dollars per ton, down 3.97 U.S. dollars from the previous period, which was significantly lower than the previous high figure.

“Tight electricity supply may continue to push up coal prices and stimulate the recovery of China’s coal imports in the later period.” Li Chaolin, an expert in the coal industry, pointed out that the acceleration of coal restructuring in Inner Mongolia and other places this year also makes the market supply and demand expected to be tight and resources are limited. The price will remain high.