Tianjin Xinyue Industrial and Trade Co., Ltd.
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Coal transportation encounters huge difficulties

Jan. 12, 2021

The cold wave and the epidemic have affected automobile transportation and transit; the strong wind closure of the northern port has affected the coal transfer in these two days. Recently, the approval and delivery of vehicles from the call bureau has improved, but the coal in Inner Mongolia has a high water content. When unloading at the port, the frozen block frequently blocks the transfer tower drop hopper, and the reclaimer freezes the coal to block the grille. Occurrences have occurred, resulting in a decline in port loading efficiency and the number of unloaded vehicles. After the cold weather, the impact of frozen trucks revived, and the Daqin line appeared to ship less than 1.1 million tons in a single day. The cold wave aroused the enthusiasm for power plant procurement, and the large purchases of some power plants increased the enthusiasm of traders to increase prices, and port prices continued to rise. Up to now, the price of 5000 kcal low-sulfur coal is 810-820 yuan/ton, and the price of 5500 kcal is about 900 yuan/ton.

Coal transportation encounters huge difficulties

The downstream coal demand is strong, and terminal transportation is active. Although the ship closure affects the entry and exit of the port, the overall transfer is still high. The port, the second port and the downstream inventory continue to hover at a low level; the epidemic situation in some areas is severe, and the coal cart from Hebei is pulled Restricted to varying degrees, outbound coal transportation has been affected, and the pressure on railway transportation has increased. The decline in the supply of production areas, combined with the increase in demand for terminal power plants, has led to the inability to effectively accumulate inventory in the port, and the shortage of high-quality coal sources has not been effectively resolved, and coal prices continue to rise. The call bureau gives priority to protecting key enterprises. It is difficult to get cars for trading coal. The increase in the price of automobile transportation and the poor delivery caused difficulties in replenishing the storage of downstream power plants, boosting subsequent purchases and increasing coal prices.


Due to the cold weather and the long Chinese New Year holiday approaching, coal production mostly remained constant, while the pithead platform was actively pulling in, cement and chemical demand were promising, and coal prices continued to rise. The average daily increase of 5,500 kcal in Datong is 10 yuan/ton, which has risen to 610 yuan/ton. The coal price in the production area has exceeded 600 yuan/ton. In other areas, Yulin, Ordos and other places have also maintained a rising pattern. The downstream inventory in Jiangnei is 5.25 million tons, a record low in four years. Some ports in Jiangnei offer 5500 cards at 950 yuan/ton.


In order to alleviate the tight supply situation in the domestic coal market, the country relaxed its restrictions on coal imports, and the terminal purchase of Indonesian coal demand surged. However, due to rainfall, shipments were blocked and the market was in short supply. After a part of the liberalization of imported coal, it will not help much to change the domestic supply and demand pattern, and the market remains tight. However, the domestic production and transportation links that are the most important task are not smooth. Due to the continuous cold wave and low temperature weather, the phenomenon of frozen coal transported from various stations in Inner Mongolia to the northern port is serious. Up to half of the frozen coal is stuck around the carriage. The coal-producing port uses electromagnetic pulse to clean it. Frozen coal has reduced efficiency and wagon turnover rate. Recently, the number of unloaded vehicles at Bohai Rim ports has dropped to about half of normal conditions. A large area of the country is suffering from a new round of low temperature and cold weather, downstream power plants are operating at high loads, and the demand for replenishment is urgent. The number of cargo ships such as anchors at Bohai Rim ports has once again risen.


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