Thermal coal prices across China's major production hubs continued to drift lower on September 9, with higher-CV grades experiencing steeper losses, as easing restocking from non-power sectors and seasonally weak power coal burns added to the market's wait-and-see mood.

Of the 117 coal mines surveyed by Sxcoal on September 9, six mines raised prices by an average of 17.5 yuan/t, while 19 mines lowered prices by 44.95 yuan/t on average. The remaining 92 kept prices stable.

The decline followed a slowdown in procurement from metallurgical and chemical users, whose steady purchases had underpinned the prior price surge. Weeks of rallies had pushed spot prices to levels downstream buyers were reluctant to accept. Many industrial buyers hence exercised caution in securing pricier high-CV raw materials following earlier concentrated restocking.

The demand-side softness was compounded by fading thermal generation needs. Power plant coal consumption fluctuated downwards after the peak summer period, with daily coal burns at plants under six major coastal power groups down 12.5% from the mid-August high to 848,600 tonnes on September 8, Sxcoal data showed.

Moreover, despite minor dips, existing coal inventories at these plants could cover 16.6 days of usage on the same day, back above safety thresholds. This, combined with scheduled maintenance at some plants, dampened spot restocking activities.

In addition, a cold air mass moving southward on September 9 is expected to cool central and eastern China, with temperature drops sharper in the north. Even the more modest southern cooling would erode regional air-conditioning load, further curbing coal intakes at power plants.

Meanwhile, some railway station-based traders also sat on the sidelines. Given the prevailing "chasing highs, avoiding lows" mentality, some miners hence faced diminished truck loadings, prompting downward adjustments this week. But these slides failed to meaningfully revive mine sales as mine-mouth prices remained at relatively elevated levels for the year.

In Shaanxi's Yulin, high-CV chemical coal saw the steepest reductions. A Shenmu-based miner slashed prices for 6,200 Kcal/kg NAR slack coal (S 0.2%) by 110 yuan/t to 940 yuan/t on September 9, mine-mouth with VAT. Meanwhile, several online auctions failed to settle as downstream buyers took a prudent buying approach, and successfully concluded deals mostly reported transaction price falls.

The Inner Mongolia market followed the downward drift. An Ordos-based miner cut prices for several chemical-purpose slack and lump grades by 40-70 yuan/t, with 5,700 Kcal/kg NAR slack material (S 0.52%) down 40 yuan/t to 930 yuan/t, mine-mouth with VAT. "Demand slightly picked up after the declines, with some end users resuming purchases. But overall truck arrivals remained thin," the miner said.

A second miner source noted that demand was still lukewarm and prices in Ordos had yet to reach attractive levels, adding that subdued truck loadings suggested that further downward adjustments are likely in the short run.

In contrast, prices in northern Shanxi largely stabilized amid tight supply. Some mines in the region did not resume full output. A Shuozhou-based miner noted that even long-term contract volumes could not be fulfilled due to low capacity utilization.

A Xinzhou-based miner put 4,500 Kcal/kg NAR slack coal (S 2.1%) for auction at 658 yuan/t on September 9, mine-mouth with VAT, unchanged from the last deal, citing low inventories driven by comparatively stable essential buying among downstream buyers.

Despite the gathering headwinds, miners cautioned against expecting a sustained correction. Safety inspections remained stringent across Shanxi, Shaanxi and Inner Mongolia. While previously suspended mines gradually restarted, output in many cases did not normalize, keeping effective supply growth limited.

Several participants said the market dynamics did not materially loosen, providing a floor beneath prices even as demand-side weakness capped further gains.

The upcoming mid-Autumn Festival and National Day holidays, along with winter restocking, have yet to trigger concentrated purchases, leaving room for demand to rebound in the near term and bolstering a positive outlook.

On September 9, Sxcoal assessed Datong 5,500 Kcal/kg NAR coal at 855 yuan/t, mine-mouth with VAT, up 17 yuan/t day on day, while Ordos 5,500 Kcal/kg NAR material dipped 2 yuan/t to 860 yuan/t. Yulin 5,800 Kcal/kg NAR grade fell 24 yuan/t to 916 yuan/t.