Trading atmosphere remained subdued at north China ports, owing to the absence of prompt buyers but more sellers, although speculative sentiment pushed offer prices higher.

 

Transactions were difficult to finalize, probably as more insiders adopted a wait-and-see approach, traders said, but this still reflected the cautiousness among end users.

 

On December 18, offers for 5,500 Kcal/kg NAR coal were generally unchanged at 965-975 yuan/t FOB with VAT, according to traders, while 5,000 Kcal/kg cargoes were offered higher at 860-870 yuan/t. Cargoes of 4,500 Kcal/kg NAR were offered at 740-750 yuan/t.

 

Despite a lower offer of 855 yuan/t for an Inner Mongolian 5,000 Kcal/kg NAR cargo with 0.6% sulfur, there were no buyers willing to take at this price level, with some proposing to close at 850 yuan/t.

 

An Inner Mongolia 5,500 Kcal/kg NAR cargo was heard traded at 877 yuan/t today, according to a Shanxi-based trader, who offered Shanxi coal of this grade at 880 yuan/t with 0.7% sulfur.

 

One cargo of Xinjiang 5,500 Kcal/kg NAR coal with 0.3% sulfur was bid at 960 yuan/t, but the seller refused to sell. Some low-sulfur Shanxi 5,500 Kcal/kg NAR cargoes were offered at 970 yuan/t, a level too high to attract buyers.

 

For 4,500 Kcal/kg NAR grade, availability was limited for cargoes with prices lower than 740 yuan/t, as most selling interest focused in the range of 740-750 yuan/t.

 

A Hebei-based trader received a bid of 730 yuan/t, but he thought the trade price should be at least 740 yuan/t for the time being.

 

A drop in temperatures in the southern regions might bolster up coal prices. Rains and snows were forecast to last in South China for the following 10 days starting from December 18, when temperatures were lower than normal levels of the past years, said the National Metrological Administration.

 

Despite expectations of price hike, the difficulty in closing transactions may impede any substantial price increases, a Fujian-based trader noted.

 

Demand from non-power sectors remained lackluster, with no tenders issued in recent days. Whether the market can maintain the momentum may still rely on buying from utilities in the coming days.

 

These utilities actually put their demand on hold, trying to depress prices. Recent data showed coal inventories have declined fast at coastal power plants. As of December 17, stockpiles at the six major coastal power plants were enough to support 15.1 days of use on average, down sharply from 16.8 days a week earlier.

 

On December 18, the CCI index for 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was at 953 yuan/t FOB with VAT, a 2 yuan/t rise from December 15; 5,000 Kcal/kg NAR coal at 854 yuan/t, a 4 yuan/t rise, and that for 4,500 Kcal/kg NAR stood at 733 yuan/t, up 3 yuan/t.