Shenhua coal stocks exceed the standard or will cut prices again in mid-September

On the evening of August 31, Shenhua Coal announced the sales plan
of thermal coal in September.
In addition to continuing to implement banker's acceptance concessions in September Shenhua thermal coal sales, the rest of the large-volume discounts, low-calorie high-loading and coal-blending concessions implemented in August were all cancelled, and all coal loading was carried out
according to the calorific value of the order.

In mid-to-late August, the temperature in the north and south showed a peak and fell trend, and the "parade blue" had a certain impact on the production of open-pit coal mines in the north and coal consumption in some areas, and the domestic coal market as a whole showed a sluggish and stable operation
.
The price of thermal coal in the Bohai Rim region continued to fall, and the prices of coking coal, anthracite coal and injection coal were under
pressure due to the suspension of steel enterprises in the Beijing-Tianjin-Hebei region.

According to data from Axunsi research and statistics, as of September 1, Shenhua's Huanghua Port coal inventory was 2.
1 million tons, still above the warning line
of 2 million tons.
At the same time, the coal inventory of the six major coastal power plants was 12.
84 million tons, the daily consumption of coal was 539,000 tons, and the number of days of inventory availability was 23.
8 days, of which the number of days available in inventory increased by 4.
1 days
compared with August 1.

Deng Shun, an analyst at Anxunsi, said that judging from the September price plan announced by Shenhua, Shenhua's intention to stabilize prices is obvious
.
However, in September, most parts of the country will gradually distance themselves from the hot and hot weather, and the demand for thermal power is about to enter the traditional off-season; In addition, China's PMI values released by the Bureau of Statistics and Caixin respectively fell below the 50% wilt line in August, hitting a new low in many months; In addition, affected by the military parade, the Mid-Autumn Festival and the upcoming National Day holiday in September this year, downstream demand is expected to decline
further.

"With the current downstream inventory generally sufficient, the market generally expects that large mines such as Shenhua will lower their prices
again in mid-September.
" Deng Shun thought
.

An Peng, an analyst at GF Securities, said that the recent coal market supply and demand has not improved significantly, especially due to the drop in temperature in the southern region, the daily consumption of thermal coal in power plants has decreased month-on-month, and the downstream production restrictions caused by the "parade blue" have also inhibited coal demand, the short-term coal market has not yet seen a turnaround, and the seasonal demand in the later period may appear after
late September.