SunSirs: Stable Supply and Demand of Coking Coal before Mid-Autumn Festival

On September 12, the coking coal commodity index was 113.78, which was the same as yesterday. It was 6.38% lower than the cyclical peak of 121.53 points (2019-03-12), and 153.35% higher than the lowest point of 44.91 on January 28, 2016. (Note: Period refers to 2012-09-01 to date).

On September 12, the domestic coking coal market as a whole was stable, and the market prices of coking coal (coking concentrate) in Tangshan, Hebei Province, Handan, Hebei Province and Huaibei, Anhui Province were temporarily stable. The mainstream prices were about 1,530 RMB/ton, 1,515 RMB/ton, and 1,530 RMB/ton respectively, the markets were still open.

At present, the supply and demand of the market are basically balanced.

In terms of supply, the coal-producing areas in Shaanxi Province in the first ten days of September had good sales, and stocks remained at low and medium levels. There were more coal-carrying vehicles, and coal mines maintained a balance between production and marketing. However, in Inner Mongolia, the sales of Mongolian coal are not ideal, mainly because of the reduction of production restricted by coal tickets in Inner Mongolia, tight supply and associated decline in sales, the price has raised about 10 RMB/ton. On the port side, the coal transportation volume of northern ports increased before Mid-Autumn Festival.

In terms of demand, power plant consumption remains stable, and the inventory pressure of power plant remains at the middle and high levels. With the passing of the summer electricity peak, the inventory pressure of coal stock piling is likely to increase.

SunSirs expects that coking coal market in late September will also be difficult to reverse too much, maintaining a weak shock pattern.

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