China's thermal coal market presents a mix of trends: domestic prices have experienced a slight increase due to supply shortages in low-CV grades, while import prices have declined amid weak demand from power plants in both China and India.
Key Takeaways
Domestic Prices: Thermal coal prices in China rose modestly last week, particularly for low-CV grades driven by supply constraints.
High-CV Coal Dynamics: Prices for high-CV coal were less encouraging, potentially facing downward corrections due to muted transaction activity and rising selling pressure.
Port Inventory: Coal inventory levels at major Chinese ports continued their downward trajectory.
Import Prices: Imported thermal coal prices fell last week, reflecting weak demand from both China and India.
Australian Coal Demand: Demand for Australian high-CV coal has notably risen since the New Year, primarily sourced by cement manufacturers.
Mining Hesitance: Miners were reluctant to reduce prices, anticipating a tightening supply from upcoming mine closures.
Index Trends: The Fenwei CCI index for domestic coal saw a slight week-on-week increase, whereas the import index experienced a decline.
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