Coal industry: price stabilization due to Spring Festival

According to reports, domestic thermal coal prices continue to maintain stability. Although the Bohai Bohai Thermal Coal Price Index continued to fall by a total of 2 yuan to close at 625 yuan/ton, the decline narrowed; Qinhuangdao port coal prices, Shanxi origin prices and Guangzhou destination port prices remained stable.

As of February 8, the price index for Newcastle, Australia and Richard Port, South Africa rose by US$1.05 and US$0.72, respectively; for the European ARA Three-Port Coal Market, the price index for thermal coal was US$85.14/ton, down by US$1.29.

International energy prices fluctuate, and the US dollar index rebounded. As of February 15, Brent crude oil ** settled at US$117.66/barrel, up US$4.38/barrel from the previous period. As of February 15, the price of natural gas fell by 0.27 U.S. dollars from the previous period to 3.18 U.S. dollars. The US dollar index was 80.46 points, a rebound of 0.71 points from the previous period.

Qinhuangdao port stocks rebounded. As of February 15th, Qinhuangdao Port had a coal inventory of 721.19 million tons, an increase of 444,900 tons from the previous period, an increase of 7%.

Coastal coal freight fell. As of February 8, Qinhuangdao - the Shanghai Shipping price of 26.10 yuan / ton, down 2.80 yuan / ton from the previous period; Qinhuangdao-Guangzhou freight 34.80 yuan / ton, down 1.00 yuan / ton from the previous period.

In the future price outlook, as the downstream industries such as power plants and steel mills before the Spring Festival increase their inventory in advance, post-holiday demand recovery is expected to be relatively slow. However, most of the coal mines are currently suspended from production, and later full production is expected to be provided after the Lantern Festival. In the short term, regardless of whether thermal coal, metallurgical coal or anthracite prices are expected to remain stable in the short-term, after the Lantern Festival, when downstream production is fully resumed, phased restocking is expected to drive prices to continue to rebound.