Thermal coal prices go straight down

The first round of the 2014 Bohai Bay Thermal Power Coal Index announced on December 25, 2013 to January 7, 2014 showed that the comprehensive average price of 5,500 kcal thermal coal for heating in the Bohai Rim region was reported at 610 yuan/ton. The previous report period fell by 21 yuan/ton, ending the 11th consecutive week of rising trend. Analysis of the industry, after the New Year's Eve soared, thermal coal prices fell after the year is difficult to reverse.

During the 10 consecutive weeks of rising coal prices, senior coal marketing expert Li Chaolin predicted that he would drop sharply. Today, the dynamic coal market has indeed staged a sharp downward trend.

Judging from the heat output of 5,500 kcal/kg of thermal coal, except for the Tianjin Port, the trading price range was the same as the previous reporting period, which was still 610 to 620 yuan/ton, and the transaction prices of other ports showed a downward trend.

“The drop in the price and the magnitude of the increase are expected in the market. The inventories at the port of Hong Kong rose sharply at the end of December 2013. Today, Qingang stocks rebounded to 5.7 million tons, and the coastal coal freight rate also began to plummet, and may only reach the current level. The level in October 2013. The previous 11-week increase was mainly due to the large coal companies' price increase before the coal-to-electricity negotiations, and this month, Shenhua and China Coal's long-term prices were significantly reduced to break the high price level. , set the tone for the price drop." Li Chaolin told the Economic Herald reporter.

"Now the price of 610 yuan / ton is still higher than the actual transaction price of the market. During the Spring Festival has traditionally been the low-peak period of electricity consumption, with the power companies shut down for work, the daily consumption of power plants will continue to fall, the port coal prices will lose support. The imported coal will continue to arrive in Hong Kong, and the bearish atmosphere in the market is strong. It is expected that the thermal coal price will continue to fall before the Spring Festival, according to an analysis by the analyst of the high altitude guide.