SunSirs: As the Flood Season Approaches, the Decline in Spot Thermal Coal Prices has Narrowed, and Inventory Pressure is still Ongoing in China

The demand for the place of origin is low, the market sentiment is pessimistic, and the price continues to decline. The activity of the port market has slightly improved, the price decline has narrowed, and downstream inquiries have increased, but transactions have been relatively low. Imported coal prices have slightly stabilized, while Australian coal has rebounded slightly. Recently, the national temperature has increased significantly, and the pressure on civilian electricity has slightly increased. The main flood season in Sichuan and Chongqing has started, with increased precipitation in some areas of the southwest, and the output of hydropower may improve. The electricity demand in major provinces and cities is weaker than expected, with daily consumption slightly higher than the same period in 2021. The overall load of the power plant is not high, and inventory is at a high level. The main focus is on long-term cooperation, and there is currently no demand for large-scale replenishment. Under the pressure of inventory and price reduction, the enthusiasm for shipping from the origin is not high, the coal from Beigang is reduced, and the willingness to transport downstream is insufficient. The same decline occurs when transferring out, and the high level of port inventory fluctuates. Industry inventory is high, with long-term cooperative supply and foreign trade replenishment, supply remains relatively strong, water and electricity are gradually recovering, coal prices continue to be under pressure, and prices may continue to decline before the peak summer.

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