Coal Industry: Lower Coal Prices, Lower Energy and Emission Reductions

Weekly price dynamics: This week Qinhuangdao port coal prices fell as compared to last week. Qinhuangdao Datong high-grade hybrid 6000KC dropped 0.6% to 765 yuan/ton, Shanxi Youmi 5500KC dropped 0.7% to 720 yuan/ton, and Jingtang Port 5500KC thermal coal. Last week fell 0.7% to 720 yuan / ton, Huanghua Port raw coal was unchanged from last week at 775 yuan / ton, Guangzhou Port Shenmu excellent mix 6000KC unchanged from last week at 830 yuan / ton.

This week, the coal price in Datong Pit is unchanged at 465 yuan/ton compared with last week. The price of 2# coking coal pit in Gujiao area was unchanged at 740 yuan/ton from last week.

Thermal coal in Newcastle, Australia, fell 1.1% this week to US$93, which is 50 yuan higher than Qinhuangdao Datong High-grade Coal.

The coking coal cart price in major regions this week was unchanged from last week, and the price of 2# coking coal carts in Shanxi Gujiao area, the main producer of domestic coking coal, was still 1,430 yuan/ton. The price of open-cook coal was unchanged from last week at 1450, while that of Pingdingshan was also unchanged at 1,450 yuan/ton. This week, the price of pits at Yangquan was unchanged at 985 yuan/ton from last week; the price of coal injected rose from last week. % to 1030 yuan/ton.

With price-related indicators: Qinhuangdao stocks this week rose 8.5% to 7.78 million tons last week, transferred amount (447 million tons) rose 4.2%, adjusted volume (393 million tons) fell 11.3% this week, WTI oil prices higher Zhou rose 2.8% to US$74/barrel. This week, the international steel price index fell by 0.9% from the previous week to 181. Affected by the shutdown of steel production capacity, steel inventories fell by 1.6%. Tangshan secondary metallurgical coke prices remained unchanged from last week. 1780 yuan/ton, the main point of view: the housing operating rate increased in August, electricity consumption also picked up year-on-year, M2 indicators also began to rise, under the pressure of energy-saving emission reduction, many provinces began to shut down backward production capacity, August prices The chain rose slightly, up 9% year-on-year. In the second week of September, the price of homes rose again and the volume of transactions also increased. It is expected that with the continuous launch of the new market, the transaction will rise, and the total social demand will rise. Long-term composition is good. However, affected by the shutdown, the coal industry's direct upstream steel and non-ferrous metals and other industries may have less production growth, which will pose pressure on coal demand in the short term. At the same time, the recent rise in house prices has also increased the uncertainty of real estate policies . As of 2010-9-13, thermal coal stocks have a PE valuation of 13.6 times in 2010, and international thermal coal stocks are 15.7 times cheaper at home.