Domestic market Thermal coal market was steady in general at major production bases. Miners returned to normal work slowly; demand recovered a bit as downstream sectors gradually resumed operation.
Prices of slack coal stabilized in Shaanxi, while that of lump coal rose 10-20 yuan/t due to short supply.
Sales were poor in Inner Mongolia, with prices for slack coal falling a bit. Prices climbed at a few mines with low operation rate.
Trading activities seemed increasing at northern China ports, and utility restocking helped reduce port stocks to support coal prices. Mainstream 5,500 Kcal/kg and 5,000 Kcal/kg NAR coal were offered steady at 590-600 yuan/t and 530-540 yuan/t, FOB with VAT respectively.
Import market Some buyers started to turn to purchase domestic material due to high import coal prices and rising international shipping rate. Indonesian 3,800 Kcal/kg NAR coal was offered steady at $44-45/t FOB.
Major coking coal miners made no price adjustment in Shanxi, while loss-making coke firms continued pressing down purchase prices. Mines in Pu County, Linfen City have resumed production, but supply may be affected by ongoing environment inspection.
One large miner in Shandong gave a 40-60 yuan/t discount for clean coking coal and offered the material at 965 yuan/t ex-washplant, as inventory pressure increased.
A few steel mills expanded production cut in smog-stricken Tangshan of Hebei, but their coke stocks remained high.
As the profit of billet was up to 400 yuan/t, many steel mills accelerated their efforts to resume work. Some coking plants spontaneously pared back production to ease losses, but the weakness may not soon change in the coke market.
(Writing by Katherine Wu Editing by Jessie Jia)
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