1. Price Trend

According to SunSirs, last week (12.23-12.27), the thermal coal market price rose slightly. The price of thermal coal at the beginning of the week was about 556 RMB/ ton, and the price at the end of the week was around 559 RMB/ ton. The price at the end of the week was 0.54% higher than that at the beginning of the week.

2. Analysis of Influencing Factors

Supply was relatively reduced, market price was slightly higher

According to SunSirs, on one hand, after entering the winter, the environmental protection is strengthened. In addition, the early coal mine accidents caused the coal security inspection to be strengthened again, which led to the increase of coal production stop and production restriction, and the transportation volume was significantly reduced. On the other hand, the port thermal coal storage was also significantly reduced, the market spot was relatively short, and the market quotation was increased.

Large increase of daily consumption of power plant supports the formation of power coal

With the arrival of the deep winter, the daily consumption of the power plant is gradually increasing in December, and the inventory is correspondingly reduced, which forms a certain support for the thermal coal. According to the information of SunSirs, as of December 26, the six coastal power plants had an inventory of 16.04 million tons, a daily consumption of 774,300 tons and a usable period of 20.72 days.

3. Market Forecast

SunSirs’ analysts believe that, on one hand, affected by the environmental protection policy of the production area, the supply of thermal coal has been reduced at present, on the other hand, the daily consumption of downstream power plants has increased. In a general view, it is expected that the power coal market will continue to explore slightly in the short term.

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