On October 28th, the early trading opened and the “three brothers” of thermal coal, coking coal, and coke closed the limit. Green Dahua Futures believes that the limit is mainly due to several reasons: First, the State Council issued a notice on the "Carbon Peak Action Plan by 2030""It is required to implement the all-scrap electric furnace process, vigorously promote the demonstration of non-blast furnace ironmaking technology, and continue to reduce steel production capacity. China is dominated by long-process steelmaking, and the development of electric furnace steel means that the demand for coking coal and coke will be greatly reduced in the later period. Second, the relevant state departments will seriously check and rectify illegal coal storage sites. Coal stocks, including invisible stocks, will be released to the market to increase market supply. The third is administrative measures to control coal prices.

After administrative intervention on coal prices in the early stage (5500 kcal thermal coal pit price was reduced to below 1200 yuan/ton), the National Development and Reform Commission held a thermal coal price limit meeting on the morning of October 27 to further clarify the details of the price limit, according to the opinions of the meeting , After conversion, the port thermal coal price limit is 800 yuan/ton.