Bohai Rim thermal coal price closed at 569 yuan/ton

During the reporting period (December 19, 2018 to December 25, 2018), the Bohai Rim Thermal Coal Price Index closed at 569 yuan/ton, a month-on-month decrease of 1 yuan/ton.
Judging from the calculation results of transaction prices at six ports in the Bohai Rim, during the reporting period, among the 24 specification products, 19 were the specification products with falling prices and 5 were the specification products with the same price.
The analysis believes that the supply and demand in the domestic trade market is again imbalanced, and the following aspects have contributed to the continued decline of the Bohai Rim Thermal Coal Price Index.
1.
The spot price returns to the green range.
The new year is about to start.
Spot prices are gradually returning to the green price range.
Large coal companies lowered their sales prices by a maximum of more than 20 yuan/ton.
According to the calculation rules of the long-term association price, the elderly long-term association will also see a downward trend in January, and the market will be under downward pressure.
Larger.
2.
Imported coal impacts the domestic trade market.
After the New Year’s Day, imported coal will add another share of customs clearance.
Although the policy is not clear, a large amount of imported coal has arrived ashore waiting for customs clearance, and there will be subsequent arrivals.
The effective supply of coal is predictable and domestic and international coal prices are interactive.
Will strengthen again, the impact of low-priced imported coal on domestic trade coal prices has begun to appear.
3.
Market pessimism continues to ferment.
Towards the end of the year, coal holders are under pressure to withdraw funds and have begun to sell goods at low prices, but the willingness of power plants to receive goods is still low, and forward contracts are also heavily discounted.
The ZC905 contract once dropped to 551 yuan/ton, and pessimism continued.
Fermentation, the market bears strong expectations.
4.
The high inventory in the middle and downstream lowered the willingness of terminal replenishment.
Although coal demand has entered the peak season and power plant inventories have shifted downwards and will soon drop below 16 million tons, after the early replenishment in the off-season, they are still at a relatively high level, which is about 6 million tons higher than the same period last year.
High inventory suppresses purchase demand.
In terms of the coastal shipping market, the Ocean Coal Freight Index (OCFI) released by the Qinhuangdao Seaborne Coal Trading Market shows that during the reporting period (December 19, 2018 to December 25, 2018), the domestic offshore coal freight index has fluctuated.
The freight index closed at 751.
53 points on December 25, a decrease of 27.
2 points, or 3.
49%, compared with December 18.
Specific to some major ship types and routes, on December 25 compared with December 18, the average coal freight rate of 50,000-60,000 tons ships on the Qinhuangdao-Guangzhou route decreased by 0.
8 yuan/ton to 33.
7 yuan/ton; Qinhuangdao to Shanghai The average coal freight rate for ships of 40,000 to 50,000 tons on the route decreased 0.
8 yuan/ton to 25.
5 yuan/ton from the previous month; the average coal freight rate for ships of 40,000 to 50,000 tons on the Qinhuangdao-Jiangyin route decreased month on month 2.