WEEKLY: Heatwave lifts China's thermal coal market, but rally short-lived?

China's thermal coal market rebounded during the week of July 13-17 after three consecutive weeks of declines, as an intense nationwide heatwave lifted power-sector coal consumption and improved market sentiment. However, the recovery still appears fragile, with utilities firms largely staying away from the spot market while port inventories have climbed close to record highs.

On July 17, Mysteel assessed benchmark 5,500 kcal/kg NAR thermal coal at Yuan 819/tonne ($120.9/t) FOB northern ports with VAT, up Yuan 17/t from a week earlier. The rebound was driven primarily by expectations of stronger summer demand rather than actual spot buying. Traders became more willing to build positions