Why does thermal coal continue to dive high?

In the past week, the black products, which had skyrocketed earlier, gradually showed signs of "misfire".

Looking forward to the future market situation, in the short term, when the margin of demand weakens, it will lead the spot coal price downward, and the corresponding disk price will also weaken in the short term.
However, there is still uncertainty regarding the mid-term price.
Because most of the recent boom in downstream power generation demand is driven by industrial power, in the context of domestic macroeconomic recovery, industrial power demand after the holiday may still have strong vitality, which will support medium-term prices.

The Yulin Coal Trading Center believes that some small and medium-sized coal mines in the production area are also prepared to not have a holiday during the Chinese New Year.
Compared with previous years, the coal supply during the Spring Festival holiday this year is sufficient.
However, the impact of the epidemic is superimposed by the Spring Festival.
As in previous years, it will stop operating in the next few days.
In the short term, coal prices in producing areas will continue to fall.

Regarding the market trend, the China Coal Association also publicly stated that coal demand is expected to increase first and then decrease after taking into account the continued economic recovery in the first quarter, the gradual rise in temperature, and the Spring Festival holiday.
In the first quarter, the demand for industrial electricity and heating coal will fall from a high level, and the demand for thermal coal will increase first and then decline; the iron and steel industry implements capacity control and output reduction.
It is expected that the output of steel and cement will not increase significantly in the later period, and the demand for coal in the steel and building materials industry will increase.
Will also fall back.
On this basis, the coal supply is generally stable, and the price will be adjusted at a high level.
The tight supply and demand situation in the market will gradually ease.

Transfer from: China Taiyuan Coal Trading Center