Daily Market Brief -25/07/03

Edited and Updated by Ethan Ma

Production Areas:
In the Yulin region, prices remained generally stable with a slight downward trend. While major mines performed reasonably well in auctions, demand from chemical and residential users has declined. Combined with rising supply, smaller mines saw weaker sales performance. Although some of them lowered prices significantly, the sales improvement remained limited.

In the Ordos region, prices were relatively stable. Coal mine operations resumed slowly at the beginning of the month, and the steady price adjustment of Shenhua outsourced coal was largely in line with expectations. As a result, most mines maintained stable pricing and adopted a wait-and-see approach, with only minor price fluctuations.

In northern Shanxi, station-based transactions dominated. Rainy weather weakened both supply and demand in local markets, keeping prices temporarily stable.

Ports:
Coastal daily coal consumption has not increased as expected, and terminals face limited restocking pressure, focusing instead on demand-based purchases and showing resistance to higher offers. Due to ongoing rainfall and relatively low transportation cost-efficiency, coal deliveries to ports remained limited, which continued to support sellers’ firm pricing sentiment.

Imported Coal:
Domestic power plants showed limited interest in increasing imports, given that their current inventory levels are adequate. Meanwhile, high stockpiles at Indian power plants and the ongoing monsoon season a continued to suppress demand for imported coal. Overall, the Asian thermal coal market remained relatively stable.