According to the commodity analysis system of SunSirs, the price of thermal coal was relatively strong last week. On May 23, the energy index was 995 points, a decrease of 5 points from yesterday, a decrease of 36.26% from the highest point in the cycle of 1,561 points (2021-10-21), and an increase of 94.72% from the lowest point of 511 points on March 1, 2016. (Note: The cycle refers to 2011-12-01 present)

In terms of origin, the overall production and sales of thermal coal remain normal, and the coal supply remains stable. Still focusing on implementing long-term cooperative shipping. In addition, due to recent coal mine safety and environmental inspections, market expectations are improving. Most coal mines have good sales, with an increase in coal hauling vehicles on the mine.

In terms of downstream ports, last week's price increase was driven by the rise in coal prices at the origin, resulting in an increase in port coal prices. It is also because as the temperature rises and the peak sales season arrives, downstream demand increases, driving up coal prices. Some traders have expectations for an increase in coal prices and are hesitant to sell, but actual downstream demand is limited.

The National Energy Administration released data on the total social electricity consumption in April. In April, the total electricity consumption in society was 741.2 billion kilowatt hours, a year-on-year increase of 7.0%. From the perspective of industrial electricity consumption, the electricity consumption of the primary industry was 9.6 billion kilowatt hours, a year-on-year increase of 10.5%; The electricity consumption of the secondary industry was 517.1 billion kilowatt hours, a year-on-year increase of 6.2%; The electricity consumption of the tertiary industry was 127 billion kilowatt hours, a year-on-year increase of 10.8%; The daily electricity consumption of urban and rural residents was 87.5 billion kilowatt hours, a year-on-year increase of 5.9%.

SunSirs analysts believe that in terms of origin, long-term cooperative shipping should be implemented as the main approach, and non electricity demand should be purchased on demand. In terms of downstream ports, traders have expectations for an increase in coal prices and are reluctant to sell, but actual downstream demand is limited. Overall, it is expected that the price of thermal coal will continue to fluctuate, depending on downstream market demand.

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