According to the monitoring of SunSirs, the price of thermal coal (port) was around 471.75 RMB/ ton, 0.16% higher than that on May 11. Previously, the price of thermal coal has ended a continuous decline and recovered. In terms of production area, affected by the recent high-speed recovery charges, the cost of transportation in production area increased, and the number of coal hauling vehicles in some areas decreased significantly. Due to the limited downstream demand, the main producer price of thermal coal during this period is still weak. However, the port market shows signs of stabilizing and rising slightly. From the downstream power plants, as of May 12, the inventory of six coastal power plants was 15.1278 million tons, the daily coal consumption was 642,000 tons, and the available days were 23.56 days. Since May, the national temperature is significantly higher, the daily consumption of power plants is significantly increased, but the inventory is still high. The actual procurement demand is limited, and the background of supply exceeding demand continues. The inventory of six major power plants has declined, but the current inventory level is still on the high side.

SunSirs’ analysts believe that: after May Day holiday, highway recovery charges, coal downstream users more on-demand procurement, poor mine market shipments, price pressure. The market demand of downstream power plants has picked up slightly, driving the price of thermal coal to rise slightly. Generally speaking, the price of thermal coal may rise slightly in the short term, but in the long term, the pressure of thermal coal supply and demand contradiction still exists, the weak demand situation of port market is still obvious, and the space for thermal coal to rise in the later period is insufficient.

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