Ports in China such as Jingtang have high stock piles of thermal coal, close of 5.3 mn tons. It is said that the current overstock is mainly due to slower demand from power plants amid weakening industrial activities.
Demand for domestic coal has decreased to some extent because of large quantities of imported coal for its price advantage.
Besides, hydropower generation is abundant in southern provinces this year thanks to rich rainfall, and it alone accounted for 8-10 million tonnes less coal burn in May.
NCV(ARB) 5048 Indonesian coal is being offered around $91/MT CFR South China.
High quantity of US and Russian coal is now being pushed into China and India, giving further pressure to Indonesian and South African coal.
Separately, Sojitz Corp, Japan's third-biggest coal trader, aims to more than triple Mongolian coal sales to China from 3 million to 5 million tons a year within three years.
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