DAILY: China's portside thermal coal to rise towards Yuan-900/t threshold

China's portside thermal coal market extended its rally on August 25 as traders held back sales, betting that benchmark prices would cross the threshold of Yuan 900/t. While bullish sentiment has raced ahead of physical fundamentals, participants see further upside as replacement costs had already exceeded the price mark.

On Tuesday, Mysteel assessed 5,500 kcal/kg NAR thermal coal at northern ports at Yuan 864/tonne ($127.5/t) FOB with VAT, up Yuan 3/t from Monday. The 5,000 kcal/kg and 4,500 kcal/kg NAR grades each rose Yuan 3/t, to Yuan 774/t and Yuan 690/t respectively. At eastern ports along the Yangtze