China's coal market is poised for a significant uptick in prices, according to fresh insights from the China Coal Transportation and Distribution Association CCTD. General Manager Han Lei of CCTD's research department highlighted that domestic thermal coal prices have surpassed 800 yuan $110.41 per metric ton, which is seen by many in the industry as marking the bottom for the year. Current coal market dynamics suggest a trend of stabilization and resurgence in prices.
Notably, the cement industry has witnessed a decline in capacity utilization, from 80% to 50% over the past year, attributing the slump in coal demand partly to the prolonged downturn in real estate. However, amidst these challenges, there are silver linings for the Chinese coal market. While demand from sectors like cement may have dipped, stability in coal consumption persists within the power sector.