Daily Market Brief -25/08/04

Edited and Updated by Ethan Ma
Aug 4, 2025

At the production regions,
in Yulin, coal supply recovery has been relatively slow this month due to frequent rainfall, while demand has remained strong, supporting a continued firm market. However, as coal prices have risen sharply in the short term, buyer hesitation and resistance have become more pronounced today, with some mines already experiencing failed auctions.

In Ordos, procurement from both end-users and traders has remained steady, with pithead inventories at relatively low levels. Combined with rising outsourced coal prices, miners still show a clear willingness to raise prices.

In northern Shanxi, market sentiment has been positive, supported by continued price increases at the ports and growing price acceptance among end-users, resulting in stable-to-firm coal prices.

At the ports:
Downstream buyers are purchasing based on actual needs, but remain cautious toward high-priced coal. However, frequent rainfall in major producing regions has disrupted mining and outbound logistics. At the same time, the delivery-to-port price inversion is deepening, prompting traders to hold back on sales and maintain firm price expectations, further supporting port prices.

For imported coal:
End-user inquiries in the Asia-Pacific region have increased. In addition to Chinese power plants continuing to issue tenders, interest in Indonesian medium- to high-calorific-value thermal coal has also grown from Japan and South Korea. With India expected to return to the market after the monsoon season, overseas suppliers remain optimistic and are holding firm on offer prices.