While soft demand continued to weigh on thermal coal prices across China's key mining regions on December 23, the market experienced a tentative easing of pessimistic sentiment amid slightly improved sales for cost-effective grades and year-end production cuts.

Of the 90 coal mines surveyed by Sxcoal on December 23, two mines raised prices by an average of 5.5 yuan/t, while six mines lowered prices by 9 yuan/t on average. The remaining 82 mines kept prices stable.

The prevailing softness was exemplified at some mines in Inner Mongolia. An Ordos-based mine cut offers for several grades by 30 yuan/t, while 5,800 Kcal/kg NAR raw coal (S 0.2%) sourced from Zhunger also dropped 10 yuan/t to 540 yuan/t, mine-mouth with VAT. "Overall demand stays poor. Even after price cuts, truck arrivals remain sparse," a local miner source pointed out.

The overall buying appetite from railway station-based traders was tepid, and chemical plants also eased purchases after earlier concentrated restocking.

Power plants, facing lower-than-expected coal consumption and safe stockpiles, only fulfilled essential needs with minimal volumes. Daily coal burns at plants under six major coastal power groups were still 7.5% lower than the year-ago level as of December 22, Sxcoal data showed, despite a 0.6% day-on-day uptick.

However, the market's underlying stance began to shift away from unrelenting bearishness. In a notable market anchor, a leading Chinese miner kept third-party coal buy prices for 4,000-5,800 Kcal/kg NAR thermal coal unchanged starting December 22. This stability, following long-lasting declines since mid-November, somewhat tempered market panic.

While many mines continued to face sales pressure, a handful with notable price advantages saw truck arrivals increase. In Shaanxi's Yulin, increasing miners raised offers by 5-10 yuan/t today. A miner source lifted 6,100 Kcal/kg NAR lump coal (S 0.2%) by 10 yuan/t to 782 yuan/t amid improved sales, mine-mouth with VAT, believing that prices have touched bottom.

"We lift prices for washed products by 5-10 yuan/t after resuming sales post-safety inspections, supported by active truck loadings and relatively low inventories," a second miner source confirmed.

Surrounding coal miners also tested price upticks of 10-20 yuan/t, a Yulin-based miner told Sxcoal. "We have started maintenance shutdown today after meeting production targets, leaving scarce stocks available for sale. Operations will restart on January 1, 2026, and surrounding areas are also experiencing production reductions." Such supply contractions provided certain support for mine-mouth prices.

In Inner Mongolia, several miners observed that coal trucks were lining up, as their prices were lower than those of neighboring competitors. Zhunger-sourced 4,700-4,800 Kcal/kg NAR washed slack coal was offered at 390 yuan/t, up 10 yuan/t.

Industry insiders argued that the room for further price collapse is constrained. They anticipate reduced pressure from renewable energy substitution in the first quarter of 2026, paving the way for thermal coal and its primary consumer, the power sector, to potentially enter a new upward cycle.

On December 23, Sxcoal assessed Datong 5,500 Kcal/kg NAR coal at 555 yuan/t, unchanged day on day, and Ordos 5,500 Kcal/kg NAR material was also unchanged at 527 yuan/t. Yulin 5,800 Kcal/kg NAR grade stayed flat at 574 yuan/t.