WEEKLY: China's thermal coal prices rangebound near highs as supply policies shift

China's thermal coal market remained largely rangebound but near recent highs during the week of September 14-18, as weakening seasonal demand was offset by still-tight supply. Prices fell in the first half of the week before recovering mildly, but the market's focus has now shifted from whether supply will improve to how much additional coal policy measures can actually deliver to the market ahead of winter.

As of September 18, Mysteel assessed the benchmark 5,500 kcal/kg NAR thermal coal at Yuan 983/tonne ($146.5/t) FOB northern ports with VAT, down just Yuan 2/t from a week earlier. The 5,000 kcal/kg and 4,500 kcal/kg grades also fell Yuan 5/t each, to Yuan 889/t and Yuan 803/t, respectively. Supply