Coal market prices in Hunan Province rose slightly in the first week of October

According to the Hunan Provincial Department of Commerce’s monitoring data on the province’s production materials circulation market, in the 41st week of 2023 (October 2-October 8), the average coal sales price in Hunan Province was 1,114.67 yuan/ton, an increase of 2.5% , down 10.3% year-on-year. In terms of types, the average sales price of anthracite coal was 1,486.5 yuan/ton, up 3.6%, down 9% year-on-year; the average sales price of bituminous coal was 928.75 yuan/ton, up 1.6%, down 11.3% year-on-year.

Coal market prices in Hunan Province have increased slightly for five consecutive weeks, with a cumulative increase of 3.1%. The main reasons for the rise in coal prices are: first, the supply of coal continues to be tight. During the "Double Festival" period, coal mine safety inspections remained high-pressure, and coal mines that did not have safe production conditions and were at risk of major accidents were ordered to suspend production for rectification. It was difficult to significantly release coal output and was generally low. The province's coal inventory is at a relatively low level, basically the same as the same period last year; second, the demand for replenishment during the heating season has started. Power plants have replenishment needs before the heating season. Coupled with the seasonal recovery of demand in steel, chemicals, cement and other industries, coal demand may exceed expectations, but its durability remains to be seen. The third is the support of international energy prices. The recent sharp rise in international crude oil and natural gas prices has driven up international coal prices, and the resonance of domestic and foreign market prices has provided support for domestic coal prices.

To sum up, the fourth quarter is the peak consumption season for the coal industry. The tight balance between coal supply and demand will continue. Coal prices are expected to continue to rise. It is expected that the province's coal market prices will continue to maintain strong performance in the future.