SunSirs: Weak Performance in China Thermal Coal Prices Last Week (March 4-8)

According to the commodity analysis system of SunSirs, the price of thermal coal was weak last week. On March 10th, the energy index was 1011 points, unchanged from yesterday, a decrease of 35.23% from the highest point in the cycle of 1561 points (2021-10-21), and an increase of 97.85% from the lowest point of 511 points on March 1st, 2016. (Note: The cycle refers to 2011-12-01 present)

In terms of origin, strict safety inspections were conducted during important meetings, and the supply of thermal coal was slightly tightened. However, most coal mines have maintained normal production, and the supply of thermal coal has gradually resumed. However, the overall focus is on supplying long-term coal, and downstream terminal procurement enthusiasm is average, with most maintaining a cautious wait-and-see attitude.

In terms of downstream ports, overall coal prices have been weak this week due to the impact of long-term coal contracts and imported coal replenishment on power plant inventories, which has led to a cautious wait-and-see attitude towards the market's coal supply. The overall market release is average, and the terminal market mainly maintains a small amount of rigid demand procurement for thermal coal. In the traditional off-season market context, overall transactions are relatively average.

SunSirs analysts believe that in terms of origin, long-term cooperative shipping is mainly implemented, and overall market transactions are average. In terms of downstream ports, prices have been weak this week. Power plants tend to adopt a wait-and-see attitude and purchase according to demand. Overall, it is expected that the price of thermal coal will continue to fluctuate, depending on downstream market demand.

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