Daily Market Brief -25/08/06

Edited and Updated by Ethan Ma
Aug 6, 2025

At the production regions:
In Yulin, coal prices showed mixed movements. As market activity declined, some mines began lowering prices to stimulate sales, and most large mine auctions saw more price drops than increases. However, a number of mines still saw supported sales, with prices continuing to edge upward.

In Ordos, prices continued to rise as supply recovery remained relatively slow. End-users and traders maintained stable procurement, with widespread support for mine-side sales, leading to a steady upward trend in prices.

In northern Shanxi, demand increased moderately, pithead inventories continued to decline, and some mines were operating on a “produce and sell immediately” basis, with prices trending steadily upward.

At the ports:
Concerns have emerged that the resurgence of long-term contract price advantages and the continued cost-effectiveness of imported coal may prompt end-users to ramp up long-term contract purchases, thereby squeezing spot market demand. However, with coastal power coal consumption remaining at a high level and port inflows still constrained by high transportation costs, sellers remain confident in holding prices firm, and offer prices continue to rise.

For Imported Coal:
Imported coal remains competitive in terms of price-performance, and domestic power plants have maintained strong bidding interest, with demand increasing across various calorific value grades. At the same time, heatwave conditions in Northeast Asia have led to higher procurement of high-calorific coal, supporting slight increases in seaborne coal offer prices.