According to the commodity market analysis system of SunSirs, the overall price of thermal coal increased in May. On May 30th, the energy index was 1,000 points, unchanged from yesterday, a decrease of 35.94% from the highest point in the cycle of 1,561 points (2021-10-21), and an increase of 95.69% from the lowest point of 511 points on March 1st, 2016. (Note: The cycle refers to 2011-12-01 present)

At the beginning of the month, the price of thermal coal in the port market increased, and the daily consumption of power plants basically recovered to pre holiday levels. But as prices rise, downstream companies are not in a hurry to purchase and remain cautious and watchful. The market is currently operating steadily in the middle of the month. The market transactions are relatively quiet, maintaining a cautious and watchful state. At present, the supply and demand relationship in the coal market is relatively loose, and the overall demand in the non electric industry is relatively insufficient, with only a small amount of supply being maintained. In the latter half of the month, the price increase was driven by the rise in coal prices from the production area, and the price of coal at the port also increased. 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 overall price of thermal coal is currently fluctuating in the market.

According to data released by the National Bureau of Statistics, from January to April, industrial enterprises above designated size in China achieved a total profit of 2,094.69 billion RMB, a year-on-year increase of 4.3%. From January to April, among industrial enterprises above designated size, state-owned holding enterprises achieved a total profit of 739.64 billion RMB, a year-on-year decrease of 2.8%; Joint stock enterprises achieved a total profit of 155,081 billion RMB, an increase of 0.9%; Foreign and Hong Kong, Macao, and Taiwan invested enterprises achieved a total profit of 528.59 billion RMB, an increase of 16.7%; Private enterprises achieved a total profit of 544.80 billion RMB, an increase of 6.4%. From January to April, the mining industry achieved a total profit of 392.39 billion RMB, a year-on-year decrease of 18.6%. The coal mining and washing industry achieved a total profit of 199.89 billion RMB, a year-on-year decrease of 34.2%.

SunSirs analysts believe that the implementation of long-term cooperative shipping is the main focus in terms of origin, and the overall situation is relatively stable. In terms of downstream ports, the price of thermal coal is temporarily stable in operation. Power plants tend to adopt a wait-and-see attitude and purchase according to demand. Some participants have good expectations for the future market, have a positive attitude towards prices, and the market trading is relatively stagnant. Overall, it is expected that the price of thermal coal will continue to fluctuate, depending on downstream market demand.

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