DAILY: High inventories continue to depress China's thermal coal prices

China's thermal coal market continued the downward trend on December 12, as inventory at northern ports accumulated higher, forcing traders to slash prices to clear stocks. However, buyers remained largely on the sidelines, waiting for further price falls before re-entering the market.

On Friday, Mysteel assessed 5,500 kcal/kg, 5,000 kcal/kg, and 4,500 kcal/kg NAR thermal coal at Yuan 757/tonne ($107.3/t), Yuan 655/t, and Yuan 556, respectively, FOB northern ports with VAT, each down Yuan 7/t from a day earlier. Notably, the three-week retreat has dragged the spot price of benchmark 5,500 kcal/kg