Yesterday (December 21st), BSPI continuously goes down; this condition has been continued for 6 weeks. Data showed that the comprehensive average price of 5500kcal/kg stream-coal was closed at RMB821/t, decreasing by RMB9/t than last week, and it had been decreased by RMB32/t for 6 weeks.
It is said that the price of Bohai-Rim stream-coal geared up to glide after entering December, decreasing by RMB23/t than the high points at the end of October and the beginning of November.
Otherwise, recently, main inland coal provinces also emerge downturn in price of stream-coal, as well as in northern region of Shanxi province. Right now, 4,500kcal/kg stream-coal in Youyu, Shanxi continues reducing by RMB10/t than before.
Lin Boqiang, Director of China Center for Energy Economics Research at XMU told journalist from National Business Daily that: “as it is close to the limit of RMB800/t, the expectations on price fall effected in terms of the current situations and policies of NDRC.”
Price Fixing Policy issued by NDRC formulated that the exit price of 5,500kcal/kg thermal coal in Port of Qinhuangdao, Port of Huanghua, Port of Tianjin, Port of Jintang, Port of Jintang of SDIC, Port of Caofeidian, Port of Yingkou, Port of Jinzhou and Port of Dalian shall not exceed RMB800/t, prices of thermal coal at other calorific values shall be converted correspondingly.
Now, taking Port of Qinhuangdao as example, intervals of bargain price for 4,500kcal/kg, 5,000kcal/kg and 5,500kcal/kg stream-coal are commonly decreased by RMB10/t than that in the last reporting cycle, 5800kcal/kg stream-coal is reduced by RMB15/t than last week. However, in total 24 port specification products of this reporting cycle, there is only one port specification product which is fair in price, and 23 specification products declined in price, and there is no port specification product increasing in price for 4 consecutive weeks.
Some insiders pointed out that the pessimism to the market shall continue to spread, and they would still hold the attitude of looking on, so there were few ships waiting for coal charging on all ports of Bohai-Rim, the supply and demand of coal is low, resulting in continuous fall of stream-coal price in the market.
One coal researcher thought that by a comprehensive analysis on the recent market situation of stream-coal in coastal areas, from now to a near future before the Spring Festival, the buyer’s market structure of stream-coal in coastal areas is also difficult to be changed even in winter, and the market price of stream-coal will be in downturn continuously.