In China, NAR 5,500 spot coal prices fell to $186/t. FOB Qinhuangdao. Mixed trends are observed within the domestic market of the country. 

The key coal-mining regions of Shanxi, Shaanxi and Inner Mongolia are at the mercy of heavy rains, which have stopped production at many mines and slowed down shipments of material to ports. In the east of the country, hot weather has set in a number of provinces, leading to a marked increase in household demand for air conditioning. At the same time, in general, experts note the slow recovery of the Chinese economy after long lockdowns in H1 2022 and weak demand for coal from the industry. The upside potential for energy material prices appears to be limited.


Activity in the low CV Indonesian material market remains subdued due to weak demand from Chinese industrial facilities. The Indonesian Coal Index 5900 kcal/kg GAR traded at $186.00/t FOB Kalimantan.


High CV Australian coal rallied above $440/t. The material jumped last week as rail transportation between Newcastle's export terminals and coal-mining regions in New South Wales was shut down due to flooding caused by heavy rains.

According to the operator The Australian Rail Track Corporation (ARTC), rail deliveries will be partially restored from the evening of 07/14/2022. According to experts, during the downtime, about 3 mio t of coal failed to be delivered to the port of Newcastle. Market participants see higher demand for Australian material from European buyers, and also expect the end of negotiations between Japanese consumers and Australian suppliers on a benchmark for high CV Australian material for FY 2022-2023.


Australian metallurgical coal prices fell below $250/t. Metallurgical indices remain under pressure from the continuing decline in demand for steel.

In China, the seasonal decline in demand was amplified by fears of a new wave of COVID. In Europe, a growing number of steel companies are shutting down production due to high electricity prices and low demand. Last week ArcelorMittal Dunkerque and the Serbian HBIS Group announced the shutdown of blast furnaces. According to unconfirmed reports, the German ThyssenKrupp may also stop a number of mills for maintenance.