Coal prices stayed flat at high levels (Aug.27-31)

The summer peak season for coal demand was drawing to end this week, but the continuous hot weather across the country pushed up electricity demand, leading to robust thermal coal consumption.

According to relevant data, the coal stocks of national major power plants reached 27.54 million tons as of Aug 26, with daily consumption of 1.84 million tons, an increase of 1,000 tons over the previous week. Based on daily consumption indicators, the coal stocks were at a 14-day supply.

The coal market started to become flat this week after consecutive weeks of upward momentum, except for continuous price hike in premium steam coal and coking coal in some parts of the country. It is expected that electricity and coal demand will tend to drop after the onset of September when the weather becomes cooler, and the coal market will swing to a stable momentum.

QHD Port: the port stockpiled 4.37 million tons as of Aug 26, a decrease of 8,000 tons over Aug 17 but still at a reasonable stock level. Premium steam coal prices continued to rise due to the low stock level. The prices of Datong Premium Mix (6000 kcal/kg) increased by 5-6 yuan/ton; while those of Shanxi Premium Mix (5500 kcal/kg) rose 4-5 yuan/ton.