SunSirs: Port Stocks Increased and Steam Coal Market Slightly Declined (10.08-10.11)

1. Price Trend

According to SunSirs, steam coal prices fell slightly this week. At the beginning of the week, the price of steam coal was maintained at 588 RMB/ton, and at the end of the week, the price was maintained at 585 RMB/ton, with the overall price slightly falling by 0.51%.

2. Analysis of Influencing Factors

Port steam coal stocks increased, supply pressure on the steam coal market was negative. According to SunSirs, as of October 10, Qinhuangdao Port had an inventory of 6.805 million tons, an increase of 725,000 tons from the beginning of the month; Huanghua Port had an inventory of 2.266 million tons, an increase of 284,000 tons from the beginning of the month; Caofeidian Port had an inventory of 4.275 million tons, an increase of 755,000 tons from the beginning of the month; and Jingtang Port had an inventory of 1.83 million tons, an increase of 30,000 tons from the beginning of the month.

The daily consumption of power plants is basically stable, which supports the power coal market. According to SunSirs, as of October 10, the daily coal consumption of six major coastal power plants was 637,000 tons, with an increase of 56,000 tons compared with the previous year, an increase of 97,000 tons; the usable days were 25 days, the cycle ratio was reduced by 2.7 days, a decrease of 2.7 days compared with the previous year; the inventory was 15.911,000 tons, and the cycle ratio was reduced by 19,000 tons, an increase of 931,000 tons compared with the previous year;

3. Market Analysis

SunSirs’ analysts believe that on one hand, the supply pressure of steam coal is still, on the other hand, the daily consumption of power plants is relatively stable. It is estimated that the steam coal market will remain weak and stable in the short term. Later, with the gradual heating, the steam coal market may rebound slightly.

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