While spot thermal coal prices fluctuated at northern China ports in recent weeks, prices have remained largely stable at major mining regions as producers made adjustments based on sales.

 

Coal supply slightly declined at some private mines, as they are close to complete annual production targets, in addition to the recently intensified safety inspections. However, output at major producers has remained steady, mining sources said.

 

Demand has been lackluster in recent days, with local purchases tapering off as stockpiles at power plants in northern China lingered around historical highs for this time of year.

 

Cement, metals and chemicals sectors have also scaled back operations due to seasonal weakness, reducing demand for coal and other raw materials. Uncertainty at ports and low activity from traders at railway stations were likewise dampening demand.

 

Against this backdrop, most mines reported moderate sales and rising inventories, triggering some minor price declines. Only a few miners selling high-quality grades reported slightly higher offers.

 

On November 6, Sxcoal's survey on 90 mines showed only three raised prices by 4.5 yuan/t on average, seven cut prices by 16.6 yuan/t averagely, and the remaining 80 mines kept prices unchanged.

 

In Shanxi, the top coal-producing region, coal prices were relatively stable with some minor adjustments, as miners focused on maintaining stable supply. Stocks were said to be minimal. Downward price pressure was seen as limited for now.

 

In neighboring Shaanxi, the pithead market extended weakness amid thick "wait-and-see" sentiment among downstream buyers. Some miners continued cutting prices to attract buying interest. Local miners reported the market still lacked clarity, banking on a rebound at ports that would likely boost sentiment locally.

 

In Inner Mongolia, demand was lukewarm and prices edged up or down in narrow ranges. Some mines raised selling prices by 5-10 yuan/t, while others cut prices by 10-20 yuan/t to stimulate sales.

 

Stockpiles were manageable but rising at some mines, suggesting an overall supply glut with scant demand on the horizon. "Unless there are price pickups at ports, mine-mouth prices are expected to continue drifting lower," a local miner said.

 

Portside prices unchanged

After founding a floor from declines lasting for more than two weeks, the portside market has been quite steady, owing to sufficient supply and retreated demand.

 

On November 26, the 5,500 Kcal/kg NAR grade was generally offered at 930-940 yuan/t FOB with VAT, and offers for 5,000 Kcal/kg NAR remained at 820-830 yuan/t.

 

Quotations for 4,500 Kcal/kg NAR were scarce, with a few 0.8%-sulfur cargoes quoted at 720 yuan/t.

 

Several traders confirmed a deal done at 831 yuan/t for 5,000 Kcal/kg NAR coal with 0.8% sulfur. This trilled traders who said "it is a good price that bode well for a new round of rally".

 

A Hebei-based trader reported a 5,500 Kcal/kg NAR cargo traded at 930 yuan/t, a price neither high nor low.

 

"We saw a rise in domestic vessel shipping rates as many vessels were sent to run international routes amid recent rallies," said a Zhejiang-based trader, adding this may subdue buying interest.

 

The market still lacks a clear direction with both buyers and sellers waiting for new dynamics, which may emerge after the national coal trade fair ended on December 8.

 

On December 6, the CCI index for domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was at 933 yuan/t FOB with VAT, flat from a day earlier; 5,000 Kcal/kg NAR coal at 820 yuan/t and that for 4,500 Kcal/kg NAR at 715 yuan/t, both unchanged day on day.