How long can the coal price be firm?

Recently, due to strong downstream demand, the power grids in Central China, North China, and East China all experienced different levels of power supply shortages, which drove the thermal coal market to perform well. Local coal enterprises basically have no coal deposits. In addition to the high price of imported coal, many users in the southeastern coastal areas have adjusted their cargo supply capacity to the domestic market, which has increased the purchase of domestic coal and exacerbated the tense situation of coastal coal transportation. Port coal prices have exceeded last year's high levels. Inland pit prices also showed a narrow rise.

Judging from the current situation, many coal companies have saved coal ahead of schedule. Coal prices may enter the upstream channel during the peak period of coal use. However, as the power of downstream restocking weakens, coal prices will start to stabilize, which will be the future coal market. A new change. After the May 1st, due to the rebound of the steel market, the coking coal market pressure has improved compared with April. The price of coking coal in Shanxi Province has risen narrowly, ranging from RMB 30 to RMB 40/t. However, the current market conditions in the downstream market are still uncertain, and the continuous decline in inventories indicates that seasonal demand is still recovering.

However, the tepid steel price performance shows that the recovery of seasonal demand has not met the expectations of the previous market, and the negative impact of continued tightening cannot be ignored. In particular, for the manufacturing industry that has been in a relatively high economic position in the previous period, the current downstream steel market continues to be weakly consolidating. The market has mostly wait-and-see attitudes toward the later trend, and the latter trend still depends on the performance of the steel market in May.

Currently, the anthracite lump coal market and downstream enterprises are still in a stalemate stage. Henan Shenhuo Group anthracite prices are lowered by RMB 40/t again. As the current downstream market has not yet entered the off-season, demand still has support for the anthracite coal market, and coal companies are not intent on adjusting prices on a monthly basis. Coal prices still do not show concessions, and downstream companies are not willing to accept goods.

The downstream season of the downstream companies ended immediately and the enthusiasm for purchasing raw materials also declined. Therefore, coal prices continue to hold high and will lack demand support. Coal companies have already felt the pressure to take the goods. Coal companies are still waiting to see, but if the downstream demand continues to decline, the possibility of a drop in coal prices is still very high.

The recent sales of smokeless injections are still hot, and many companies have plans to increase their production. However, due to the current high prices, steel mills are not well-funded, and they continue to lack support from steel mills. The price is therefore relatively stable.