Seaborne coal network yesterday released the latest data show that as of June 26, the average price of the Bohai Sea port calorific value of 5500 kcal steam coal market closed at 702 yuan / ton, down 3.7 percent from the previous reporting cycle. This is the biggest weekly decline since the Index, the index for the second consecutive week refresh. Coal losing streak behind the one hand, the decline in demand, the impact of imported coal and domestic market; the other hand, power plants, port inventories high, the coal-infested. Insiders pointed out that coal "golden years" end. Today, coal prices take a pay cut tide has been struck.
 
Decline in demand:
 
Coal prices have fallen for eight weeks into a buyer's market
Network of seaborne coal coal index yesterday showed that the thermal coal price index in Bohai Sea has eight weeks in a row down, and the decline in the expanding trend, the current price has slid over the end of last year, nearly 150 yuan / ton.
 
Continued to fall in coal prices, market participants attributed the weakened downstream demand. Since the beginning of this year, plentiful runoff situation boost hydropower generating capacity this year, the peak time. Development and Reform Commission published data show that in May, the National Hydropower generating capacity of 66.6 billion kwh, an increase of 31.1 percent, an increase of 52.1 percent compared to April. The data show that the average daily coal supply power plant in early June, down 6.3 percent compared with May, late June, along with the South into the hot season, the increase in public electricity, but the increase is limited, the majority of coastal power plants coal quantity more normal levels still down about 15%.
 
A drop in demand at the same time, imports of coal to join the impact on the domestic market, resulting in the coal market this year, a typical buyer's market. Hang Hau price since June, the main coal-producing provinces dropped significantly downstream of the main power plant to receive the price continue to drive down and around the port inventory is full, causing the market panic. Expected a pessimistic market outlook, coupled with financial pressure, many traders choose the "flesh", low-cost shipping in order to avoid market risks. Ports offer confusion, under normal circumstances, the transaction price will be lower than the listing price of 10 to 15 yuan / ton, however, offer basically less than 20 to 30 yuan / ton, very little turnover.
 
High inventory: users purchasing enthusiasm of decline
Traders strongly shipping, but now the situation is still not optimistic, power plants, ports, coal stocks rising. Zhuo record information, statistics show that coastal six the number of stored coal power plants reached 16.09 million tons, coal storage compared to the previous week fell 35 million tons, but the coal storage in the number of days available is still up to 29 days, including Zhejiang and State Power coastal power plant coal storage quantity and number of days available, coal storage, respectively, to reach 4.62 million and 3.95 million tons, coal storage available days of 470 000 and 33 days respectively.
 
Henan, a power plant staff, said the plant last week, the coal to receive the price of this has been the down, but due to the current inventory of up to 20 million tons, so the plan has once again lowered to receive the price of 0.002 yuan / kcal. Under pressure plant is no suspension of the coal program, but if consumption did not increase, enter the purchase price after July may also continued to fall.
 
At the same time, major ports are also coal-infested, as of June 27, the average daily inventory of Qinhuangdao Port coal is about 8.95 million tons. Enter late, due to the pressure port field kept the shipping port direction of coal prices to reduce shipments of port stocks fell slightly, but still high compared with the previous. Port inventory of 8.9 million tons, with the reduction in the transferred amount, Qinhuangdao Port measures simultaneously deal with the coal pressure Hong Kong, the late slightly decreasing trend will continue.
 
To the inflection point: coal prices take a pay cut for the winter
"I think the coal" golden years "should be ended." Coal marketing staff of the Department of Henan Shenhuo Group Zhang Jin (pseudonym), told the media recently revealed that "Qinhuangdao 5500 kcal steam coal price of 650 yuan ability to come to a halt is hard to say. "
 
Face of the external market downturn, the coal companies began to reduce costs. It is understood that China's second largest coal enterprises in coal group in April and May this year, a series of pay cut 10 percent, China's largest coking coal production enterprises of Shanxi Coking Coal Group under the Coal Mine also have to take a pay cut. The pay cut tide of this wave to hit Henan. Jin Zhang, said, "Yongmei and Yima Group intends to take a pay cut 20% have heard, we are still carrying, but also sooner or later the thing."
 
In addition, the reporter learned from Cheng Coal and Henan Coal Chemical Industry Group, the two companies have a pay cut plan. "May be the next month began. Leadership for high-income, pay cut might be more than 10% and 20%." Henan Coal Chemical Group's sales headquarters staff informed (a pseudonym), told reporters.
 
In addition to the cost of a pay cut less, limited production price of coal enterprises to cope with the current plight of another way. Yima Coal Industry Group, who declined to name the person in charge told this newspaper that is now Henan most of the coal production enterprises are produced in limited production and pressure. Coupled with the integration of coal resources, focus on coal mine safety and other reasons, is expected this year, coal production in Henan Province, the sales decreased by 20%. Permanent Henan, China Coal Transportation and Marketing Association, market observers Chao-lin said.
Bad strong:
 
Coal Jiangzai down
 
Outlook is still not optimistic, although the two days port inventories fell and the main power plant consumption increase, but analysts still can not determine the demand has improved, the strong negative pressure will continue to promote coal prices down again by the end of June, the coal market or then turmoil. "The current market has not a factor in the work arena, despite the recent increase in temperature increases the public electricity, but the weak positive can not withstand a major economic recession tide." Liu Dongnuo said.
 
Henan Province Coal Transportation and Marketing Association executive vice president, assistant director of Henan Province Coal Industry Authority Wang Ronghai told the media that: "coal over the years has always been the 3-5 year cycle since 2000, coal prices have been up, but coal downstream quickly the current situation from the beginning to now, the profits of an enterprise of Henan coal has declined from 30% to 40% market rebound is still no end in sight. "Wang Ronghai sigh.
 
However, the coal business people do not agree with the "golden years" of the end of the argument. Caozhen Ming, Cheng Coal sector researchers, told this newspaper that China's energy is still dominated by coal, oil prices go up, coal prices will go up.



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