China’s 5,500 kcal Thermal Coal at Northern Ports Slides to 800-810 Yuan/Ton

Spot prices for 5,500 kcal/kg thermal coal at China’s northern ports fell further to a mainstream range of 800-810 yuan per metric ton on July 9, as weak spot buying and high inventories weighed on the market, according to Jiemian News. The price had risen to 870 yuan/ton in mid-June before reversing; it dropped to 841 yuan/ton on June 30, down nearly 30 yuan/ton over about two weeks. Jiemian cited market participants as saying the recent decline was driven in part by prolonged Meiyu-season rainfall in the Jiangnan and Jianghuai regions, which boosted hydropower output and reduced demand for thermal power generation. China’s National Development and Reform Commission (NDRC) said that as of June 16, coal stocks at centrally dispatched power plants totaled 210 million tons, equivalent to 34 days of use, at a historically high level for the period. CCTD China Coal Market data showed that on July 8, spot reference prices at northern ports for 5,500K, 5,000K and 4,500K thermal coal were 802 yuan/ton, 709 yuan/ton and 614 yuan/ton, down 6 yuan/ton, 5 yuan/ton and 5 yuan/ton day on day, respectively. Jiemian also reported that Bohai Rim port coal inventories fell below 30 million tons during the week of July 9, ending a prior accumulation trend. Analysts interviewed by Jiemian said prices could still face near-term downside, with one coastal-market analyst forecasting a further 20-30 yuan/ton decline for 5,500 kcal coal at Bohai Rim ports in early July, while others expected demand to improve after the Meiyu season ends and temperatures rise. A revised standard for identifying major coal-mine accident hazards took effect on July 1, tightening restrictions on illegal overcapacity production and potentially limiting supply flexibility during peak season, the report said.