WEEKLY: China's thermal coal market holds firm despite cautious buying

China's thermal coal market remained broadly stable over May 11-15, as firm cost support offset subdued spot demand. Although trading activity remained thin, market participants widely believed that upward momentum was quietly building, with another round of summer restocking by utilities expected later this month likely to lend further support to prices.

As of May 15, Mysteel assessed benchmark 5,500 kcal/kg NAR thermal coal at Yuan 835/tonne ($122.8/t) FOB northern ports with VAT, up slightly from Yuan 833/t a week earlier. After the sharp gains seen from late April to early May, portside prices stabilized during the week. Downstream utilities turned more