China's domestic thermal coal prices advanced further on December 13 even as demand only picked up moderately, underpinned by expectations that cold weather could raise consumption and curb supply.

 

On December 13, cargoes of 5,500 Kcal/kg NAR thermal coal were generally offered at $965-975 yuan/t FOB with VAT, up from 955-965 yuan/t a day earlier; those of 5,000 Kcal/kg NAR coal were quoted at 860-880 yuan/t, compared with 850-860 yuan/t from a day earlier; offers for 4,500 Kcal/kg NAR grade were around 720-740 yuan/t.

 

Some Shanxi 5,500 kcal/kg NAR cargoes traded at 955-960 yuan/t, according to traders, building on gains seen in recent sessions.

 

While offers for high-quality 5,000 kcal/kg NAR coal were up to 880 yuan/t, transactions were limited except for urgent needs from downstream buyers. One trader managed to sell 5,000 Kcal/kg NAR coal at 855 yuan/t, noting higher prices were deterring deals.

 

A Hunan-based trader reported an Inner Mongolia 4,500 Kcal/kg NAR cargo totaling 30,000 tonnes settled at 750 yuan/t, higher than normal selling ranges as the buyer rushed to load a vessel at northern ports.

 

Traders still eyed snowfalls and temperature declines in northern China this week. The National Meteorological Administration forecast heavy snows in Shaanxi, Shanxi – two key coal producing regions – and Hebei, Beijing and Henan in December 13-14.

 

Shipments on the key Daqin railway have slowed due to snow, with daily volumes down to 1 million tonnes.

 

Qinhuangdao and some other ports in the Bohai Bay have lifted voyage restrictions caused by gales, with outbound shipments jumping by 295.1% day on day on December 13 from the three major ports of Qinhuangdao, Caofeidian and Jingtang as showed by Sxcoal data.

 

Source disclosed that the top mining group on December 12 revised up its buying prices from other mines at a railway station in Inner Mongolia, with 4,500 Kcal/kg NAR grade up 20 yuan/t from last adjustment to 537 yuan/t, 5,000 Kcal/kg NAR grade up 24 yuan/t to 648 yuan/t, and 4,500 Kcal/kg NAR grade up 11 yuan/t to 756 yuan/t.

 

However, the price rally fell short of traders' expectations, suggesting milder demand in the near term.

 

In addition, many traders were also accelerating coal sales to wrap up the year, which could weigh on spot prices in the market.

 

On December 13, the CCI index for 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was at 951 yuan/t FOB with VAT, up 3 yuan/t from a day ago; 5,000 Kcal/kg NAR coal at 850 yuan/t, a 6 yuan/t rise on a daily basis, and that for 4,500 Kcal/kg NAR stood at 730 yuan/t, a 4 yuan/t rise.