SunSirs: Tightening Supply and Demand, China Thermal Coal Prices slightly Increases
July 03 2025 14:16:50     SunSirs (Selena)The average price of 5,500 kcal thermal coal around the Bohai Sea has risen to 620 RMB/ton (week on week +0.2%), and the CCI index has also risen to 618 RMB/ton (+0.5%), mainly due to the rapid depletion of inventory, the release of summer power plant demand, and the expectation of supply contraction in production areas.
Supply side: The production plan for the production area at the end of the month has been adjusted, and the market expects some coal mines to tighten their supply;
The supplementary effect of imported coal has weakened, and domestic supply dominates the short-term market.
Inventory side: The inventory of the eight ports around the Bohai Sea decreased to 26.34 million tons (June 27), a decrease of 4.83 million tons from May 10, hitting a new low in nearly three months, supporting the upward trend of coal prices.
On the demand side, macroeconomic resilience is highlighted: in 2015, the national electricity consumption increased by 3.4% year-on-year, and industrial electricity consumption steadily recovered;
The high temperature weather has driven the daily consumption of power plants to increase, resulting in an increase in essential procurement. However, under the coverage of long-term cooperative coal, market coal procurement is still mainly focused on price suppression.
The continuous high temperature in summer continues to support the demand for power plants, but under the regulation of high inventory policies, it is expected that coal prices will mainly fluctuate in a narrow range. Attention should be paid to the safety supervision of production areas and the pace of imported coal arrival at ports.
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