Winter Coal Prices Will Not Rise Sharply

Winter Coal Prices Will Not Rise Sharply

Winter Coal Prices Will Not Rise Sharply

    Into December, with the cold air hit, power plant consumption will increase, driven by the recovery of downstream procurement, coal prices continue to rise; expected good market situation is expected to continue, the market price of coal to maintain high oscillation, the ship to the port double many will continue with the northern port.

    Affected by environmental protection and safety regulation, the coal shipment in the upper reaches was sluggish. Before the end of the year, the demand for coal rapidly increased and the supply growth slowed down. The thermal coal price in the market is expected to continue to strengthen. However, in contrast with the sharp rise in coal prices in September, Turnover coal spot price rose a small extent, the rise more rational; and port coal trading volume is not much, the duration is shorter, the northern port market thermal coal delivery to maintain the dual supply and demand weak trend.

    In winter, the cooling in east China will increase the daily consumption of power plants, while the climate in southern China is suitable and the daily consumption of power plants will not change much. And this winter there are environmental factors, high energy-consuming enterprises off-peak production offsetting effect. Therefore, this winter, the market situation is getting better and shorter duration. It is estimated that from December to January next year, the daily consumption of the six major power plants in the coastal areas will keep hovering between 65-72 million tons. The power plant coal consumption will not be higher than that of summer power plants. In addition, the National Development and Reform Commission repeatedly proposed to provide for the stabilization of prices, crack down on coal speculation, the market has obvious price guidance. It is estimated that the market price of coal in the port market will hardly rise sharply this winter.


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