According to the monitoring system data from Taiyuan News, coal prices in Shanxi Province rose across the board in May. The average price of coal is 1159.28 yuan/ton, a month on month increase of 5.3%.
1, The price of coking coal has been rising all the way. In early May, the price of refined coal for coking in the province slightly increased, and the profit per ton of coke for coking enterprises increased. Coupled with the relaxation of environmental inspections in production areas and the release of new production capacity, coking enterprises had a high production enthusiasm, and the overall level of operation remained high. The demand for rigid replenishment of raw material coking coal remained stable. The refined coal market for coking in the province is operating strongly, and the prices of major coal enterprises remain stable. In the latter half of the year, the price of refined coal for coking in the province continued to rise. The coke market is operating strongly, and the tight supply of coking coal from the production area is difficult to alleviate. The mentality of coal mines being reluctant to sell has increased, and it is slightly difficult to increase downstream inventory, supporting a significant increase in the coking coal market.
2, The price of anthracite coal is steadily increasing. In early May, the price of smokeless block coal truck boards in the province remained stable. The downstream agricultural fertilizer demand in the urea market is relatively weak, and industrial users have a high enthusiasm for purchasing goods, resulting in slight increases in urea prices in many regions. The market situation in the fertilizer and chemical industry has fluctuated and risen, and the demand for raw material coal procurement in chemical enterprises has been steadily released. Coupled with strong demand from downstream users such as electricity and metallurgy, the coal market has been boosted, and the sales situation of smokeless lump coal in the market has slightly improved compared to the previous period. The production of anthracite coal in the province is generally normal, and prices are mainly stable. In the latter half of the year, the prices of smokeless block coal truck boards in the province have generally increased. Downstream industrial and agricultural users in the urea market have a weak enthusiasm for purchasing goods, with some areas experiencing equipment shutdown and maintenance, and prices mainly fluctuating within a narrow range. The demand for raw material coal procurement in chemical enterprises is relatively stable, and the smokeless lump coal market is operating well due to the boost of downstream user procurement demand in power, metallurgy, building materials, and other industries.
3, The price of thermal coal first decreased and then increased. In early May, the price of thermal coal in the province slightly decreased. Security checks and environmental protection efforts are not decreasing in various regions, and coal mines in the main production areas generally produce according to their approved production capacity. The increase in supply in the spot market is not significant. As the summer coal consumption peak approaches, the purchasing demand of terminal coal consuming enterprises has increased, and there are more transportation vehicles in the mining area, resulting in a slight increase in local mine coal prices. The production of coal enterprises in the province is basically normal, and downstream enterprises are actively purchasing. Coal mine sales are relatively smooth, and the prices of large coal enterprises are mainly stable. In some places such as Changzhi, Jinzhong, and Yangquan, coal enterprise prices have fluctuated and adjusted at high levels, with declines ranging from 10-60 yuan/ton. In the second half of the year, the price of thermal coal in the province remained high. Downstream users and traders are actively purchasing, and the overall supply of goods in the mining area is showing a tight state. The queuing phenomenon of transportation vehicles to the mine has not been significantly alleviated, and coal prices in the main production areas are generally rising. The transaction situation in the provincial thermal coal market is good, downstream enterprise procurement demand is stable and released, coal enterprise sales are smooth, and prices are operating at high levels. The monthly long-term cooperative coal prices of large coal enterprises in Yangquan area have increased by 10-85 yuan/ton; Some coal companies in cities such as Shuozhou, Xinzhou, Jinzhong, and Changzhi have seen varying degrees of increase in direct coal prices.
In summary, coal prices in our province increased throughout May. Macroeconomic improvement has supported overall demand, but after a strong rebound in black varieties, there is a high probability that coking coal prices will continue to fluctuate and adjust in the later stage as demand weakens; The thermal coal market is gradually breaking away from the off-season of demand, and phased replenishment will drive short-term demand release. The overall performance of the thermal coal market price is fluctuating upwards. Overall, under the expectation of peak season, the coal market is expected to operate strongly in June, and it is expected that coal prices may fluctuate and increase.