DAILY: China's thermal coal rally accelerates on tighter fundamentals

Thermal coal prices at China's northern ports accelerated their gains on August 3, supported by a tightening supply-demand balance evident in sustained inventory drawdowns at ports. The rally was primarily driven by supply tightness and rising demand for low-calorific-value grades.

On Monday, Mysteel assessed 5,500 kcal/kg NAR thermal coal at northern ports at Yuan 829/tonne ($122.7/t) FOB with VAT, up Yuan 3/t from last Friday. The 5,000 kcal/kg NAR grade also rose Yuan 3/t to Yuan 739/t, while the 4,500 kcal/kg NAR grade gained Yuan 4/t to Yuan 648/t.