Demand weakened in domestic coal market, Shanxi Province restricted production of metallurgical coal

Yesterday, the reporter learned from related departments: In the face of the weakening demand in the national coal market and the declining trend of coal prices in the port, the province will appropriately adjust the output of some types of slow-moving coal, but the demand for thermal coal and residential heating coal is relatively high. Coal is stable production and supply.
Coal companies gather to cope with the cold current Yesterday, the relevant person in charge of the Yangmei Coal Group revealed to reporters that in the past week, the province has held two consecutive large- and medium-sized coal enterprises in the province to participate in the industry operation analysis meeting, and the current coal market sales are sluggish, coal prices The countermeasures for declining and other issues were discussed, including many key coal companies such as Yangmei, Tongmei, and Pan'an. The person in charge said: "The two meetings were held respectively in the provincial SASAC and the provincial government, but the key contents of the meeting are one - how to deal with the current weakening of the domestic coal market demand!"
According to the market data provided by the Taiyuan Coal Trading Center, the coal market has experienced the most obvious cold market in recent years since September, due to the continuous decline in the price of foreign coal, the underproduction of a large number of domestic enterprises in the south, and the sharp increase in raw materials such as steel. The price cuts have led to a significant drop in coal demand. The province’s largest transit destination for coal exports, Qinhuangdao, has seen 9 million tons of coal piled up in Hong Kong. The price of coal has also shown a general trend of decline; in particular, coal mines such as metallurgical coal and coking coal have achieved price reductions. More than 300 yuan per ton.
Differentiating the coal reserves pressure to reduce the province's coal pressure phenomenon, to adapt to the current market demand, the province will start to adjust the coal production capacity and the province's total, the market demand is obviously insufficient, the price cuts of the larger metallurgical coal, Coking coal and other coal species are subject to appropriate restrictions on production, and the production limit is expected to be around 10%.
“The metallurgical coal and coking coal are mainly supplied to steel companies, and this one is affected by the market. However, the demand for thermal coal and thermal coal is still relatively stable, and the rate of price adjustment is not large. We also need to ensure production!” According to participants: At present, although the port price of coal has been adjusted, the price of pits has not changed much. Therefore, the province will differentiate the coal types according to the market conditions and adopt the regulation method of maintaining pressure. For the winter coal, thermal coal with large market demand continues Stable production and guaranteed supply.
The railway transportation capacity is facing adjustments. On the one hand, there is a serious situation in the storage pressure of port coal. On the one hand, the railway continues to pull coal into the port “as planned” and the “market coal” and the “planned transportation” are not synchronized. Caused a short period of time in the port coal, "supply exceeds demand", leading to the main reason for the decline in coal prices. Therefore, in order to eliminate the situation of coal pressure in Hong Kong, the railway transportation capacity should also be flexibly adjusted.
Li Chaolin, a senior expert in the coal industry, believes that during the period when coal demand is booming, "capacity shortage" is a major bottleneck restricting the province's coal exports to the province. Therefore, many coal companies tend to fight for the next year's railway transportation plan in the previous year. However, under the current situation where the demand for some types of coal is insufficient, this "planned transportation" model is difficult to respond to market conditions in a timely manner, exacerbating the contradiction between coal and coal.
According to the person in charge of the relevant company, some of the metallurgical coal is difficult to sell even if it is pulled into the port, and it also has to pay a high yardage fee for the port. Therefore, it is necessary to reduce the amount of provincial transportation. According to this idea, the province will also adjust the railway transportation capacity of some metallurgical coal and coking coal to reduce the total coal shipments to Hong Kong.

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