News

You Are Here: Home - News - Coal prices and ocean freight continue to rise in a short period of time
Coal prices and ocean freight continue to rise in a short period of time
Publish Time: 2020.12.18 View: 371

This week, mine coal prices are still rising, port inventory recovery has not picked up.And futures fell, port coal prices stabilized, but the subsequent market continues to be optimistic, coal prices are still likely to rise.

Origin, supply to maintain a tight situation, the price continues to rise.Datong, Shuozhou, Yulin, Ordos coal prices rose across the board, among them, Ordos, Datong, Shuozhou coal prices have expanded, individual coal rose 10 yuan/ton a day.In the first half of this month, port coal prices have been rising sharply, providing more room for freight rates. In the face of increased demand and procurement, sea freight rates have maintained an upward trend.This week, the power plant continued to release demand and the frequent bidding of shipping capacity boosted the overall freight rate. The shipping cost of 50,000-60,000 tons from Qinhuangdao to Guangzhou rose to 67.5 yuan/ton, up 18.7 yuan/ton from the beginning of the month.

The temperature drops sharply in the south, and the cold air comes, which makes the demand continue to be optimistic;The daily consumption of downstream power plants increased, and the daily consumption of six coastal power plants was nearly 700,000 tons, which boosted the demand for coal.In the case of increasing daily consumption and insufficient transfer, coal stocks in power plants are decreasing, and some power plants are running out of inventory.On the one hand, southern users increase their purchasing power and broaden their purchasing channels;On the other hand, the orderly release of electricity, reduce the load.

What are some of the factors that continue to tighten the coal market?Undersupply is one reason.This year, Shanxi Province plans to withdraw 57 coal mines, and the coal industry in the province will realize the liquidation of “zombie enterprises” and the withdrawal of coal mines below 600,000 tons/year.Inner Mongolia has carried out a 20-year anti-graft campaign against coal and strengthened the management of coal pipe tickets.Towards the end of the year, the environmental protection and safety inspections of coal mines in the main producing areas are frequent, and the completion of annual production tasks of some coal mines is nearing the end. As a result, the enthusiasm for production declines, the overall supply shrinks, the supply of mines exceeds the supply, and the price continues to rise.Seasonal increases in coal demand are another important factor;Hydropower is weakened and pressure on thermal power in coastal areas increases.The demand for coal used in power, steel, building materials and other industries is strong, which is influenced by factors such as low temperature and increasing demand for coal used in heating. The demand for coal has increased significantly compared with the same period in previous years.

In terms of imported coal, the import coal quota was reduced, the Australian coal was stopped from receiving and discharging, the coastal market suffered from structural tension of high and low sulfur coal, and a large number of coal ships rushed to Qingang and Huanghua ports to steal coal, resulting in the tightening of the domestic coal market.Although the National Development and Reform Commission has proposed full liberalisation of coal in addition to Australian coal, it will take time to convert new coal into power plant stocks in countries such as Indonesia and Russia.In addition, it is proposed that the inventory of key power plants is still as high as 86 million tons, requiring power plants within each group to adjust each other’s coal inventory to reduce the market for high-priced coal purchases.But it will be difficult to co-ordinate within groups, and a further increase in procurement would certainly push coal prices higher.

Supply side increment, imported coal into the domestic market in large numbers, can be effective in January next year;In the meantime, coal prices are still likely to rise.