Thermal coal demand is still low

Market Review: On November 4, the TC1601 contract rebounded slightly. The opening price was reported at 327.4 yuan per ton, and the final price closed at 329.8 yuan per ton, up 0.8 yuan per ton. The position was 29,172, and the daily position was reduced by 1242.

Spot market: The domestic thermal coal market is running weakly. The Qinhuangdao port Shanxi Youqu (Q5500V28S0.5) closing price (including tax) reported at 375 yuan/ton, unchanged; Shanxi Jincheng poor coal (Q5500S1V12) pit price (including tax) reported at 280 yuan/ton, unchanged; Guangzhou port Inner Mongolia excellent Mixed (Q5500V24S0.5) port price increase (including tax) reported at 430 yuan / ton, unchanged; Australian lignite (Q5500, A <22, V> 25, S <1, MT10) CIF (excluding tax) reported $ 51.5 / Ton, flat.

Message surface: (1) On November 04, the price index for the Bohai-Range thermal coal (the average price of 5,500 kcal thermal coal in the Bohai Rim) released by the Qinhuangdao Maritime Coal Market closed at 379 yuan/ton, A report period decreased by 1 yuan/ton. (2) The Indian government stated on November 2 that it has agreed to increase the import ash limit for power generation to 25%. This will further expand the sources of imported coal for power producers and help reduce the cost of power generation.

Summary: The TC1601 contract rebounded slightly on Wednesday. The current low level of daily consumption and the low coal discharge capacity of major shipping ports show that the demand is still at a low level. Operational recommendations are short-selling near 330, with a stop loss reference of 333.