Thermal coal market at ports along the Yangtze River struggled, with substantial price cuts still meeting few inquiries from buyers.

High coal stocks at those ports continued to pressure purchasing appetite severely. On December 12, coal inventories reached 5.46 million tonnes, rising 6.41% from the year prior, a relatively high level.

Some traders became even more pessimistic about the subsequent market given persistent drops of mine-mouth prices and spot offers at northern market, intensifying their inclination to undersell cargoes. But even so, buyers only purchased on a need-to basis.

A deal for 5,000 Kcal/kg NAR thermal coal with 1% sulfur was heard concluded at 750 yuan/t FOB with VAT.

The strength of the latest cold spell restricted coal consumption at power severely. Data showed, although coal burns at power plants in coastal provinces climbed above 2 million tonnes, coal stocks climbed to a quite high level of 35.5 million tonnes, mainly owing to stabilized term contracted supplies and supplement of imported coal.

An increase of directly railway-hauled shipments of coal from Xinjiang and Shaanxi also reduced purchases of cargoes stocked at ports along Yangtze river, sources said.

"Current load capacity lingers around 70%, and we currently feel no heating pressure, especially given a condition of warm winter this year. Out procurement for winter consumption has completed, and inventories we have are enough for 15 days' consumption," said one power group in southern China. "We're more assured by steady contracted materials."

In addition, abundant imported coal also brought certain downsides to coal market nearing the Yangtze River, as some economical cargoes have eroded market shares of domestic coal in southern China, with some buyers at areas south to Yangtze River even turning to that.

Sxcoal learned some traders sold imported cargoes to Yangtze River regions at firm prices.

On December 13, the CCI Yangtze 5,500 index was at 850 yuan/t, falling 25 yuan/t week on week and adding total drops of this round up to 65 yuan/t, and the 5,000 index accumulatively declined 70 yuan/t.