The hottest La Nina rainstorm superimposed on Chin

La Nina rainstorm superimposed on China's de capacity Citigroup looks at Asia's coal price rising by 50%

La Nina rainstorm superimposed on China's de capacity Citigroup looks at Asia's coal price rising by 50%

China Construction machinery information

Bloomberg reported that Citigroup expects that if the rain caused by La Nina phenomenon is more serious than expected, Asia's power coal price may rise by up to 50% in the SCM program. La Nina and El Nino are both abnormal climatic phenomena. In China, La Nina may bring serious floods, affecting the mining and export of mineral resources, including coal

La Nina rainstorm superimposed China's de capacity

under the influence that the experimental results of China's de capacity can be automatically saved, the coal market is further tightening. The A-share coal sector has risen sharply in a row, up nearly 20% since its low on June 15. Yesterday, Shaanxi coal industry rose by more than 8%, and Xishan coal power rose by more than 7%. The prices of thermal coal in Datong, Shanxi, Wuhai, Inner Mongolia and Ordos also rose again. The plate prices of q6000 thermal coal and q5500 thermal coal trucks in Datong were 290 yuan and 280 yuan/ton respectively, both up 20 yuan/ton from the previous day; The plate price of q5500 power coal car in Yangquan area was 295 yuan/ton, up 20 yuan/ton from the previous day; The pit mouth price of Ordos q5500 power coal was 175 yuan/ton, up 10 yuan/ton from the previous day

"we are currently looking at short-term power coal prices," Citigroup analysts said. "Coal demand may be stronger than people usually expect. For tight balance, China's overcapacity reduction is also crucial."

the market is oversupplied, China's energy conservation and emission reduction reduce the use of coal, and thermal coal has become one of the bulk commodities that are least favored by market analysts. However, the current situation is different. Affected by extreme weather and inventory reduction, the agency instead believes that coal has room for further growth. In a report on July 1, the Bank of America Peter HELLES team raised its prediction that users can test new materials by using three predefined structures in the second half of the year to understand how they deposit Newcastle port thermal coal on the printing bed from $46.50 to $59. Citigroup expects the average price of thermal coal to reach $61 per ton in the first quarter of next year

ed Morse, chief global commodity analyst at Citigroup, wrote in a report on Monday that if rainfall caused by La Nina impedes output in Australia and Indonesia, the benchmark price of Asian thermal coal in Newcastle, Australia, may rise to $90 per ton. China's efforts to significantly reduce coal production capacity have also boosted demand for imported coal. According to globalCOAL, after five consecutive years of decline, the price of thermal coal has rebounded 19% so far this year, rising to $60 per ton

according to the Statistics Bureau, China's raw coal production in May decreased by 15.5% year-on-year, the largest decline since the Statistics Bureau resumed publishing raw coal production in April 2015. At the national teleconference held by the national development and Reform Commission on July 7, Xu Shaoshi, director of the national development and Reform Commission, asked all local governments to clarify their respective capacity reduction goals by the end of July, and must complete the goals by the end of 2016. According to the meeting, the crude steel production capacity will be reduced by 45million tons and the coal production capacity will be withdrawn by 250million tons in 2016, while the previous goal was to reduce the production capacity by 100million-150million tons and 500million tons respectively within three to five years

Citigroup said that as raw coal production is expected to decrease by 9% this year, offsetting the 3.4% decline in demand, Qinhuangdao coal price may reach 450 yuan per ton in December. In a report on June 23, James Kan, an analyst at Deutsche Bank, said that affected by the government's policy of limiting the number of days of coal mine construction, the coal price in Qinhuangdao may rise as high as 500 yuan per ton