MONTHLY: High temperatures to bolster China's steam coal prices in August

China's spot thermal coal market is expected to drift higher in August, supported by expectations of sustained heatwaves that would lift demand for coal-fired power for running household air conditioning. The rally may prove modest, however, as buying could fade once utilities complete inventory rebuilding, Mysteel Global expects.

August is unlikely to be a replay of July when demand had yet to be fully released amid heavy rains across southern China, particularly in the early days of the month. High inventories at northern ports and an influx of cheaper imported coal cargoes also sapped demand. Mysteel assessed the