It is reported that coal prices in Inner Mongolia increase dramatically in H1 compared to last year.

Driven by winter demand, coal prices rose slightly in January and February the average thermal coal price at the pit is CNY 297.07 per tonne up by 0.82% over the beginning of the year. Starting from March the cut in demand brings a slight decline to the price which hits the bottom of CNY 291.87 per tonne in April.

From May, coal price begin to hike due to the summer peak. It jumps to CNY 304.93 per tonne in June up by 4.47%MoM or 3.28% than the early Jan. The average coal price touches CNY 296.72 per tonne in H1 pushed by brisk demand up by 14%YoY.

Insiders analyses that coal production in Inner Mongolia, Shanxi, Shaanxi and other main producing areas maintain a robust growth, ensuring the coal supply thus snapping price hike. As a result, coal prices will maintain stable in the short term. However, regional contradictions will still greatly affect prices in H2. Especially in Q4 regional tight supply may lead to the price rise again.

(Sourced from MySteel.net)
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