Thermal coal

Production area Prices remained stable overall in major production areas, except a few miners made minor price adjustments. Several mines slowed or suspended production for maintenance after completing their production targets for the month. Demand from chemical and metallurgical plants remained stable, while residential users were also active in purchasing. Some well-sold mines reported more trucks coming for loading and slightly raised prices of raw and lump coal. Slack coal prices, however, were comparatively stagnant due to flat demand from power plants. Affected by the continuous lack of profitability in transporting coal to ports and the approaching price adjustment of a leading miner, traders at railway stations and washing plants only placed orders on a need-to basis.

Northern port The port-side thermal coal market stabilized with a small amount of essential purchasing taking place. Transaction prices of high-quality coal slightly rebounded backed by the structural supply shortage. The situation is still likely to further worsen, given a lack of confidence among traders to move coal to ports against the retreating coal burns at power plants. Some participants anticipated the space for further price increase and decrease would both be small due to tepid downstream demand and contraction of supply.

Import market Traders presented weak interests in utility tender bidding, partly due to increase in cost and partly as utilities are tendering for September laycans with relatively low prices. Importers said low-CV coal prices have fallen to near the cost of miners, with limited downside potential, while mid and high-CV coals still have room for further decline.

Coking coal

The buying enthusiasm of coking plants further slid after mills asked for coke price cut. Some online auctions continued to fail and some settlements further declined. Coal mines that were suspended due to previous accidents mostly haven't resumed production, while more mines in Shanxi and Shaanxi were subjected to stricter safety checks following a recent fatal accident in Shaanxi. Supply was still restrained, and most miners did not face inventory pressure with their stocks at low-to-medium levels.

On August 23, 1,320 trucks loaded with Mongolian coal passed through China's Ganqimaodu border port, hitting a new high so far in the year. Inquiries from downstream users started to increase after safety checks strained supply in domestic production areas. Traders' confidence slightly improved and mildly raised offer prices to 1,300-1,330 yuan/t, ex-stock with VAT.

Met coke

Some steelmakers have successfully cut coke prices while some others continued to negotiate with coking plants. The low inventory of coke, the enthusiasm of mills to restock, and the frequent accidents leading to uncertainty in securing feed coal supply have prompted certain coke firms to resist reducing their prices. However, some coke firms have already accepted the cut as their sales slowed down. A few mills continued to cap daily coke intakes in response to the mandate of flat crude steel production control. Coke supply has increased as a whole as coking plants raised production amid improved profit margins.