China's domestic thermal coal prices declined last week (September 1-5), extending the downward trend for the second consecutive week, as cooler weather dented power demand and coal consumption, industry sources said.
At northern transfer ports, coal trading remained at a standstill as utilities held back from spot purchases. Sources said most buyers focused on meeting long-term contract obligations, supplemented by occasional imports of seaborne thermal coal. With coal consumption falling on cooler weather, utilities saw little need to seek additional cargoes from the domestic market.
As of Friday, Mysteel assessed 5,500 kcal per kg NAR thermal coal at RMB 686 per tonne (USD 96.2 per tonne), FOB northern ports with VAT, down by RMB 9 per tonne from a week earlier, adding the total decline to RMB 16 per tonne since August 22. Meanwhile, 5,000 kcal per kg and 4,500 kcal per kg NAR grades logged deeper weekly declines of RMB 16 per tonne and RMB 15 per tonne to reach RMB 599 per tonne and RMB 525 per tonne, respectively.
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