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Coal Market is not good!

Date:2015-10-22 10:08:51  Hits:428  Belong to:Focus

       National Energy Board Web site Oct. 20 news, Wang Xiaolin, deputy director of the Energy Bureau recently pointed out that China's economic development is entering a "new normal" economic slowdown, continue to promote economic restructuring, the implementation of total energy consumption control, environmental protection requirements rising international coal increasing competition, the development of China's coal industry is facing the situation is very grim.
       Right now, the coal industry into the shopping season, but the market is a serious oversupply of coal prices have been falling, the outlook is not optimistic. In this context, market analysts pointed out that coal electricity suppliers are not optimistic about the prospects.
       General industry oversupply
       Coal market is not optimistic this year is a foregone conclusion. Parties messages are displayed, showing the current coal market oversupply. Part of the downstream power plant by large customers to purchase coal price, in addition to meet the needs of their own use, but also excess coal sold to other users.
       Acciona think the coal industry analyst Deng Shun believe selling coal power plant to carry out business, mainly due to the current severe domestic coal market oversupply market environment, the market supply is very loose, not enough coal power plant purchase their own use, but also to sell market to make a profit, even high-profile publicity for promotion.
       Since entering October, due to the overall weak market demand, coupled with Shenhua and other large mining repeatedly price, sales leading pearl electrically southern China for three consecutive times markdowns introduced measures to reduce the pressure on the stock. October 12, beads electricity announced that from October 12, 2015 for each pier beads electricity company in the sale of coal fuel (except coal outside Indonesia) down 10 yuan / ton. After the price adjustment, power on the 11th -5500 kcal beads Guangzhou Port car price is 430 yuan / ton, the cumulative decline in October reached 20 yuan / ton.
      Shenhua, China Coal, with four Yitai Coal and coal companies, due to the impact of weak downstream demand, poor sales, have cut prices. Acciona think think, starting October 8 Datong-Qinhuangdao line maintenance and winter storage of coal prices failed to reverse the market weakness, sluggish downstream demand led to large-scale coal enterprises sales tight; although Shenhua intends to stabilize prices in October, but in the same coal and the case of the first price of coal, Shenhua will be forced to join the price war, resulting in the situation between the lower prices of large-scale coal enterprises.

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