Daily Market Brief -2025/06/23

Updated by Ethan Ma June 24, 2025

Production Areas:
In the Yulin region, the number of coal mines halting production continues to increase. However, due to improved market expectations, nearby end-users and depot buyers have become more active in procurement. Most operating coal mines have seen improved sales, supporting a steady-to-rising trend in coal prices. In the Ordos region, prices at some cost-effective mines have seen small consecutive increases recently, which has positively influenced market sentiment. However, since overall supply remains relatively sufficient, some mines still face sales pressure. In the northern Shanxi region, prices remain stable for now. Although pithead sales have continued to improve recently, inventory pressure persists, leading coal mines to adopt a cautious approach to price adjustments, with prices mostly holding steady.

Ports:
Production at the source remains constrained, and the cost of transporting resources to ports remains high.This, combined with expectations of increased power coal consumption during the peak season, has prompted sellers to hold firm on prices and show reluctance to sell. However, terminal inventory levels are currently ample, and long-term contracts are providing sufficient coverage, so demand for spot coal has not been significantly released.

Imported Coal:
Last week, Indonesian coal prices continued to decline due to weak demand, while domestic coal prices stopped falling and showed signs of rebounding, thereby increasing the price advantage of imported coal. Currently, power plants are primarily procuring based on immediate needs. As temperatures rise across much of the country and the price advantage of imported coal becomes more apparent, procurement from power plants may increase. Therefore, further price cuts for Indonesian coal are unlikely.

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