According to the monitoring data of Hunan Provincial Department of Commerce on the circulation market of the province's means of production, the average selling price of coal in Hunan Province will be 1,248.58 RMB/ ton in the 39th week of 2022 (September 19-25), up 1.6% from the previous week. Among them, the average selling price of anthracite is 1,619.33 RMB/ ton, 2.1% higher than the previous week; The average selling price of bituminous coal was 1,063.2 RMB/ ton, up 1.3% from the previous week.

This week, the price of coal in the provincial coal market rose, and the market resources became tight. The rise in coal prices was mainly driven by the increased demand for coal in the downstream non power industries. The main reason for the rise in coal prices is that the growth rate of coal supply has slowed down. Affected by the stricter environmental protection and safety supervision during the special care period, the national coal mine operation rate has continued to decline since July, and it is expected that the new coal production capacity increment will be tightened in October. In addition, the continuous shortage of overseas coal and the firm price lead to the limited quantity of imported coal in China, which is mainly Indonesian low calorie coal with low heat and large consumption, so the actual role of import side supply is also limited; Second, the demand for industrial coal expanded month on month, and marginal improvement led to the rise of coal prices. Recently, the operating rate of steel, cement and chemical industries has generally risen significantly, and the drought in the province has led to weak hydropower output. The demand for coal is strong, providing strong support for the rising coal price; Third, coal resources are limited to the south, and the pressure to ensure supply remains. Affected by the coal supply guarantee in the heating season, the northern market has opened the winter coal storage ahead of schedule, and the coal resources are limited to the south, so the coal price has the momentum of rise.

To sum up, the current coal fundamentals in the province remain strong, and supply and demand are in tight balance. With the arrival of the peak demand season for non electric coal and the weak hydropower output caused by the drought in the province, the mismatch between supply and demand in the coal market and the import gap provide upward momentum for the coal price. It is expected that the coal market price in China Hunan province will still operate at a high level next week.

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