Inner Mongolia coal prices drop 25%

According to a data from Inner Mongolia Autonomous Region Coal Industry Bureau, as of the end of June, 67 coal mines in Inner Mongolia stopped production, accounting for 20.2% of the production of coal mines.

According to the National Development and Reform Commission, the production and sales of coal in all provinces from January to July also showed that production and sales volume in Inner Mongolia doubled in July before, and coal output was 515 million tons, down 8.2% year-on-year; sales volume was 530 million tons, down 8% year-on-year.

In terms of coal prices, the pit price of Inner Mongolia 5500 kcal thermal coal has dropped from about RMB 405/ton at the beginning of the year to RMB 310/ton on September 9, and it has been reduced by RMB 100/ton in the three quarters, a decrease of 25%. .

Analysts said that since the beginning of this year, due to the continuing downturn in the macro economy, slow demand growth, overcapacity, high inventory levels, and continued impact of imported coal, the coal price has been declining.

According to an internal report of the Shenhua Group obtained by the reporter, when the price of 5,500 kcal thermal coal has fallen to 570-580 yuan/ton, Shenhua, China Coal Pingyi and Yitai still have more than one hundred yuan of profit, while Mengxi The large-scale mines in the region still have a profit margin of 10 to 40 yuan/ton. Large-scale coal enterprises have increased their production by horsepower, and they hope to "pay the price."