Daily Market Brief -25/07/01

Edited and Updated by Ethan Ma

Production Areas:
In the Yulin region, coal prices have weakened as user procurement enthusiasm has declined compared to earlier periods. The number of mines facing sales pressure has continued to rise, with pithead inventories accumulating at a slightly faster pace. Some coal mines have lowered prices by RMB 5–10/ton.

In the Ordos region, prices remained generally stable, though some saw slight downward adjustments. The number of operating mines increased at the beginning of the month, giving buyers more options. As a result, shipments from coal mines have slowed, and some previously fast-selling mines began to trim prices slightly throughout the day.

In the northern Shanxi region, prices held steady and market activity remained calm. However, with environmental inspections concluded and coal production gradually resuming, supply is expected to rise again in the coming period.

Ports:
At the ports, most power sector end-users have sufficient inventories, leading to limited spot procurement increases. High price offers are met with low acceptance, restraining the market’s upward momentum.
However, due to intensifying hot weather and a shortage of high-quality coal supply, sellers remain cautiously optimistic about short-term prospects, and offer prices are still firm.

Imported Coal:
For imported coal, as Indonesian coal prices have declined steadily in recent weeks, most end-users and traders believe current prices have likely reached a bottom, resulting in increased inquiry activity and signs of recovering demand.
On the supply side, recent rainfall in Kalimantan has had limited impact on production and loading, ensuring relatively stable availability. In the short term, Indonesian coal prices are expected to remain steady.

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