China's northern coal ports witnessed a significant decline in anchoring and arriving vessels this week following an end of strong wind-induced operation suspensions, highlighting continued sluggish demand from downstream users.

On December 5, 83 vessels were anchored or expected at Baohai-rim ports (Qinhuangdao, Jingtang, Caofeidian and Huanghua), a notable decrease from 134 in the previous week and a comparatively low level, Sxcoal's data showed.

This could slow the progress in destocking, potentially leading port authorities to maintain efforts to expedite inventory reduction.

Coal stocks at these ports stood at 29.57 million tonnes on December 5, marking a two-day decline but still at a historically high level. The inventory represented a 12.7% rise from the preceding month and a 5.5% gain compared with the year-ago level.

"While large-scale sell-offs have not occurred, high inventory gives buyers leverage, prompting some sellers to make further concessions amid low purchase offers," said a Jiangsu-based trader source dealing in northern China.

Oversupply at ports and high costs of existing stocks have kept the bid-ask spread for spot coal at northern ports wide, hindering overall liquidity.

While an offer of 1%-sulfur 5,000 Kcal/kg NAR Shanxi coal was offered at 715 yuan/t FOB northern ports, counteroffers were heard at 710 yuan/t or below. Some participants anticipated that offer prices would gradually decline to around 700-710 yuan/t before receiving moderate support.

Offers of low-sulfur Ordos same-CV coal were heard down to 718-720 yuan/t, yet end users still maintained a leisure buying pace, with some even temporarily halting purchases of spot cargoes as they await further downward corrections.

"Traders are reluctant to enter the market, due to a lack of serious buyers even as prices are below costs," said a Tianjin-based trader. "Unfavorable market sentiment has sidelined many traders, who are awaiting clearer signals from the national coal trade fair." 

Coal consumption at power plants remained stagnant, with little support from the recent cold spell. According to data released by the National Weather Center, the average temperature nationwide in November set a new high and was 1.9℃ higher compared with the same period in previous years.

Offers of 4,500 Kcal/kg NAR coal were heard at 625-635 yuan/t, and trades were heard done at 618 yuan/t.

Demand for 5,500 Kcal/kg grade was even lukewarm. A Zhejiang-based cement producer bought a same-CV cargo with 0.6% sulfur at 816 yuan/t, delivering on December 10, while spot offers were generally above 820 yuan/t.

Meanwhile, miners continued to make downward adjustments in their mine-mouth offers, reinforcing the downward pressure on portside markets.

Some market participants remain bearish, citing a high likelihood of electricity price reduction and a persistent oversupply concern. However, some said policies aimed at stabilizing and boosting the macroeconomy could stimulate coal demand next year.

Zhang Hong of the China National Coal Association expressed optimism during the 2025 China Coal Trade Conference on December 4, stating that government initiatives to support economic stability would drive increased coal consumption in the coming year.