- Asian coal demand weak; inventories rise
- Atlantic and Indian markets quiet; buying delayed
Trading activity across the global thermal coal markets was subdued, characterised by low demand in Asia and higher liquidity in Atlantic regions, as participants sought direction at the start of the week beginning 8 December.
In Asia, the market was marked by a lack of buying interest and a bearish near-term sentiment focused on China’s weak winter demand. Australian premium Newcastle 6,000 NAR cargoes saw bids decline, while the Indonesian market saw few fresh trades, though aggressive pricing emerged for remaining December-loading low-rank cargoes. The Chinese domestic market continued to slide, with port inventories rising and traders liquidating positions.
In the Atlantic, the European DES ARA market saw slight downward pressure in paper swaps, influenced by falling gas prices. The physical South African market was exceptionally quiet, confined to bids without corresponding offers, as availability for January loading appeared limited. Indian import demand remained sluggish, with end-users delaying purchases amid stable domestic supplies and expectations of softer prices, though a few sporadic deals for alternative fuels like US petcoke were reported. The overarching theme was one of cautious waiting, with markets poised for clearer signals on winter demand and supply availability.
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