Coal prices in Sichuan Province continued to fall in July

According to the monitoring system of important means of production of the Ministry of Commerce, in July 2023, the average price of coal in Sichuan Province will be 939 yuan/ton, a month-on-month decrease of 0.9%, which is basically the same as in June; percent. Among them, the average price of anthracite was 867.9 yuan/ton, down 7.4% month-on-month and up 19.6% year-on-year; the average price of bituminous coal was 1010 yuan/ton, up 5.6% month-on-month and 3.6% year-on-year. Overall, the province's coal market prices continue to decline. On the demand side, first, the demand for power generation has weakened seasonally. After the province entered the wet season in July, the substitution of hydropower for thermal power has increased, and the demand for coal has declined seasonally. Second, the recovery of productive demand has been slow. The power generation of industrial enterprises increased by -19.5% year-on-year, and non-electric industries such as cement and chemical industry were weak in recovery, and coal was mostly purchased for rigid demand. From the perspective of the supply side, first, suppliers have sufficient inventory, and coal mines maintain normal production. Coal mines mainly focus on long-term coal supply guarantees, and the overall coal supply is relatively sufficient; second, promotions drive price fine-tuning. Coal quotations were lowered, and the growth momentum of coal prices was insufficient. With the steady recovery of market demand and the improvement of the operation of industrial enterprises, it is expected that the price of coal in the province may still fluctuate in the near future, but the decline may gradually narrow.