DAILY: China's pithead thermal coal moves higher, yet concerns grow

China's thermal coal prices at the pithead extended gains on September 3, as supply recovery failed to keep pace with demand and non-power buyers kept restocking. However, the rally showed early signs of fatigue at mines with excessive price hikes, with truck arrivals thinning and some auction lots going unsold, according to market sources.

Tightness at the pithead is not purely sentiment-driven. Coal output in Ordos, Inner Mongolia, has recovered from month-end maintenance, but the resumption has yet to keep pace with demand, with some mines still operating below full capacity, according to a North China-based trader. Metallurgical, chemical, and other non-power buyers continued