CCTD Weekly Review - China (06/23-06/29)
Time:2025-07-01 10:46:45 Source:CCTD
Edited and Updated by Ethan Ma
July 1, 2025
At ports, expectations of increased power coal consumption during the peak season have supported market sentiment. Rising downstream inquiries and higher shipping costs have led to stronger price-holding attitudes among traders, causing slight increases in the prices of some coal grades. However, end-users still hold ample inventories and benefit from long-term supply contracts, so procurement remains mainly demand-driven, with limited acceptance of high-priced spot cargoes.
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In production areas, toward the end of the month, supply has tightened. Combined with improved rail delivery activity from end-users, coal prices have seen a slight overall increase. However, due to limited acceptance of higher prices by end-users and subdued actual demand, some mines experienced reduced haulage after raising prices. As a result, producers remain cautious about further price hikes.
Short-Term Outlook: Slight Price Increases Expected
On one hand, rising daily coal consumption at power plants and cost support for traders may continue to push prices slightly higher. On the other hand, high end-user inventories and the recent price advantage of some imported coal may limit further gains.
[Bohai Rim Ports]
Portside market conditions have improved slightly. End-of-month inquiry demand from power plants has increased. Traders remain firm on prices under the support of costs and seasonal expectations. However, power plants are holding inventories at reasonable levels and are releasing procurement slowly. Thus, while port prices have risen slightly, the magnitude remains limited. Further price trends depend on end-user demand.
[East China]
Thermal coal prices rose slightly. Coke prices remained weak and stable after four consecutive rounds of cuts. Since raw coal prices have not dropped accordingly, coking margins were squeezed, and some producers reported losses. As the price cuts are digested, steel mills have reduced purchase volume restrictions and speculative demand is increasing. Overall market sentiment has improved, but future trends will depend on steel mill demand.
[North China]
Coke prices continued weak and stable. Coking plants faced mounting losses due to four rounds of price cuts. However, with downstream steelmakers easing volume restrictions and coking output being limited, the supply-demand structure has improved. Steelmakers showed short-term price stabilization expectations and marginal restocking demand, slightly improving overall market sentiment.
According to CCTD data, compared to the previous week, coking coal prices in Shanxi rose by RMB 0–20/ton, and in Linfen by RMB 0–5/ton. Thermal coal prices also edged up.
[Northeast and Eastern Inner Mongolia]
Prices remained generally stable. Long-term supply contracts were steady, and haulage continued based on rigid demand.
[Central-Southern China]
Thermal coal prices rose slightly. As temperatures climbed, daily power consumption increased steadily. Some power plants began restocking, though they showed limited acceptance of higher prices due to healthy stock levels. Supported by traders’ costs and seasonal expectations, prices showed slight upward movement. The market outlook hinges on future end-user demand.
As of June 25, 2025, Hubei Province recorded daily electricity consumption of 785 million kWh and a peak load of 37.436 million kW.
[South China]
Imported coal prices remained stable. Due to price advantages, end-user interest in imported cargoes increased, leading to a mild rebound in activity. However, high trader costs resulted in cautious operations. Market outlook will depend on end-user procurement behavior.
[Northwest China]
Long-term contract prices remained stable, while spot market prices edged up. Haulage activity improved, but end-user price acceptance remained low, favoring rigid demand and cost-effectiveness. Mine-side supply tightened slightly. Overall sentiment improved, with producers adopting a price-holding and wait-and-see approach. Market trends will depend on terminal demand.
[Southwest China]
Thermal coal prices were generally stable throughout the week. Coke prices were weak and steady.
Steelmakers reduced inventories, and expected short-term stabilization in coke prices led to increased procurement interest. Coking plants faced continued losses and slightly reduced production. However, with improved sales and rising cost support, sentiment showed signs of recovery. Power coal production remained stable, with rigid downstream demand and increased safety inspections keeping the market weak but stable.
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