As of June 26th, Qinhuangdao port Q5500 power coal prices rose to 593 yuan / ton, the week rose 17 yuan / ton, far more than 535 yuan / ton this year long association price. In order to protect the supply of coal and stabilize the price of coal, Lian Weiliang, deputy director of the national development and Reform Commission, hosted a special meeting on the nuclear power generation capacity of coal mines in June 25th. Shenhua coal and two major coal enterprises have suspended coal spot sales force, long association contract execution. Analysts pointed out that the Yingfengduoxia coal consumption season, to the summer peak after this round of power coal prices pull up or will end.
Supply tightening, superimposed consumption season
Data show that last week, the overall steam coal market upward trend, the Bohai power coal price index closed at 574 yuan / ton, up 10 yuan / ton.
Recent coal market prices rise surging. Especially in Inner Mongolia, because of environmental protection inspection team to enter, the coal pipe ticket is limited, yield release was greatly affected, coal supply phase of tight situation. Moreover, the trend of rising prices gradually spread to Shanxi, Shaanxi coal market, pushing up the price of the rapid rise in the port sector.
In the coal market supply tightening at the same time, superimposed summer peak summer season, coal resources gradually tight, coal storage capacity of major ports around Bohai showed a low running situation.
The four central Bohai port data show that as of June 22nd, Qinhuangdao port coal stocks 5 million 470 thousand tons, Caofeidian port inventory 3 million 260 thousand tons, 4 million 782 thousand tons of inventory Jingtang Port, Huanghua port 1 million 880 thousand tons of inventory. The total amount of coal in the four major ports fell from 16 million 210 thousand tons to 15 million 390 thousand tons, or 5%.
In the peak summer time, in order to ensure the supply of coal and coal prices stable, June 25th, deputy director of national development and reform commission chaired a special meeting with Victoria Liang in accordance with approved work conditions of high-quality production capacity of coal production capacity, Shenhua coal, Huaneng, Huadian, Guodian and other central enterprises to participate in the meeting. Participants said, with Victoria Liang proposed, encourage coal quality production with expansion conditions to carry out the production capacity and increasing nuclear capacity index replacement as soon as possible, the release of production capacity as soon as possible, to ensure the supply of the coal market, stabilize the market price. Local authorities should speed up the implementation of the "qualified qualified coal production capacity approved work notice", the nuclear production capacity is the focus of the recent relevant management departments. As long as the enterprise reported applications for nuclear increase, we must immediately organize inspection and acceptance, and make sure the supply and production capacity.
Insiders told the China Securities Journal reporter, nuclear production capacity is actually reducing the amount of replacement process. Overall, to encourage the release of advanced production capacity as soon as possible, instead of backward production capacity, the coal industry to create a stable price situation, to curb the rapid rise in coal prices.
It is understood that Shenhua and China coal last week suspended the sale of spot power coal, designed to protect the implementation of the long association contract.
Coal prices continued to rise in the short run
Analysts said that in the short term, the upward trend in coal prices will continue. However, the impact of this year's increase in hydropower, coastal power plant daily consumption of coal significantly lower, or will follow the decline in coal prices.
Cui Yue expressed a similar view: "the state has allowed some high-quality coal increase the production of nuclear capacity, and organized Yingfengduoxia electricity supply work conference, focusing on listening to the electricity supply pressure is relatively large areas of power coalsupply and supply situation this year, Yingfengduoxia electricity security for the programme of work report, study and arrange the next the electricity supply related work, and once again stressed the need to sign a long-term contract. Although coal prices surged, but there is no obvious improvement in the downstream demand conditions, coal prices rose space is limited, the latter market should pay attention to the downstream power plant on coal consumption situation."
Judging from the current situation, the price of steam coal rose more than market expectations. The latest issue of easy coal, the Yangtze River mouth power coal price index 5000K0.8S has reached 583.6 yuan / ton, up 16.1 yuan / ton. 5000K0.8S North mainstream price between 615 yuan -620 yuan / ton. The data set of 2017 has exceeded the "coal prices stabilize abnormal fluctuations on the market price of coal in the" memorandum "600 yuan / ton red line", at the same time far beyond this year long association price 535 yuan / ton. "This reflects the contradiction between coal and electricity, the downstream power plant is expected to seriously reduce losses, while the market risk is also accumulating." Coal related sources said.
Participants at the above meeting also revealed that the competent authorities require that the power coal transaction price shall not exceed 570 yuan / ton green space ceiling. If more than the ceiling, enterprises have further price behavior, must advance 3-5 days to communicate with the national development and Reform Commission, otherwise, the NDRC will interview relevant responsible enterprises.
In fact, the current market is not lack of coal, just because the stockpile inventory flow leads to "fixed", the lower reaches of the Yangtze River along the port yard close to the 'full library', generally tight yard. Once the market environment changes, stockpile inventory emission will boost the market prices fell rapidly." The above sources said.