Coal prices in Tianjin drop in the first week of July

According to the market operation monitoring data of Tianjin, the average price of coal in Tianjin was 715 yuan/ton in the first week of July (July 3-July 9), a decrease of 0.6% from the previous month. Coal prices are low this week, and the good fundamentals are expected to support coal prices. Coal demand is expected to recover moderately in the second half of the year, which will support coal prices. With the advent of the peak season, the daily coal consumption across the country has entered an upward trajectory. The increase in seasonal electricity consumption is expected to further support coal demand in summer, but considering that it will take time for the recovery of downstream industrial activities, it is expected that the room for more than expected growth in demand may be relatively limited. In addition, the enthusiasm for imported coal purchases may be weakened, and the risk of rising energy prices in Europe still exists. It is not ruled out that overseas coal premiums will increase again, thereby raising the cost of domestic imported coal purchases, and the high growth of coal imports may be difficult to maintain.