MONTHLY: China's thermal coal market rallies sharply in May on summer restocking, supply concerns
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The rally unfolded in two distinct phases, beginning with an aggressive post-holiday restocking push - driven by El Nino event expectations and low utility inventories - followed by a late-month rebound triggered by safety inspection concerns after a fatal mining accident.
May surge begins in April
The month opened with a sharp upward trajectory immediately after the Labour Day holiday (May 1-5), Coastal utilities firms, having experienced April's earlier-than-usual heatwave, returned to the spot market with aggressive restocking. Stocks at China's six major coastal power groups had fallen to 12.64 million tonnes by May 5-sufficient for only 16.9 days of burn, near a four-year low.
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