SunSirs: China's Thermal Coal Prices Hit New Highs for the Year

According to the China National Coal Association, as of November 10, China's “CCTD Bohai Rim Thermal Coal Spot Reference Price” for the 5500K, 5000K, and 4500K specifications closed at 817 RMB/ton, 725 RMB/ton, and 633 RMB/ton respectively. Compared to the previous day, these prices rose by 8 RMB/ton, 8 RMB/ton, and 6 RMB/ton, respectively, setting new highs for the year.

Regarding imports, data released by China's General Administration of Customs on November 7 showed that coal imports totaled 387.623 million tons in the first ten months of this year, down approximately 47.677 million tons or 11.0% year-on-year. On a monthly basis, October imports fell 9.8% year-on-year and 9.3% month-on-month.

The primary drivers behind the surge in thermal coal prices are tight supply meeting robust demand, amplified by market sentiment and policy factors. On the demand side, power plants and heating enterprises have intensified stockpiling efforts as some northern regions initiated early heating season operations in November. Currently, structural shortages are evident, with limited high-quality coal sources available. Furthermore, demand continues to expand amid heightened expectations for a cold winter.

Thermal coal demand has shown unexpected resilience, with early heating season starts in some northern regions extending the coal stockpiling period. Additionally, stable coal demand from non-power sectors like chemicals has provided extra support to the market.

As an integrated internet platform providing benchmark prices, on November 19, the benchmark price of thermal coal from SunSirs was 825.00 RMB/ton, an increase of 1.85% compared with the beginning of the month (810.00 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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