DAILY: China's pithead thermal coal prices soften as Shanxi output recovers

China's spot thermal coal prices declined across major producing regions on October 20, weighed down by weakening sentiment and a faster-than-expected supply recovery in Shanxi, the epicenter of the supply squeeze triggered by a fatal mining accident. Meanwhile, portside prices continued to climb, though the rally is losing steam as more market participants adopt a wait-and-see stance.

The Shanxi Provincial Energy Administration said on October 20 that 220 mines in the province have completed safety rectifications and resumed production since the May 22 accident, with output rising steadily following a September 26 provincial meeting. Meanwhile, September's daily average output was approximately 220,000 tonnes higher than in August,