Most Chinese thermal coal miners held offers flat on May 15 and only a handful adjusted prices based on mine sales. Softening trading activity and bullish summer expectations kept the mine-mouth market range-bound.

Of the 90 coal mines surveyed by Sxcoal on May 15, nine mines raised prices by an average of 9.33 yuan/t, while two mines lowered prices by 5.5 yuan/t on average. The remaining 79 kept prices stable.

Following sustained price hikes in the past two weeks, downstream buyers were increasingly reluctant to follow. Metallurgical and chemical plants maintained on-demand purchases, and power plants prioritized term contract coal intakes. Traders and washing plants also sat on the sidelines.

As such, truck arrivals at partial mines diminished, with shipments predominantly fulfilling short-haul essential needs. "Truck loadings were thinning out at our mine today. A pullback is coming," said a miner in Inner Mongolia's Ordos.

Meanwhile, power plants, key consumers of thermal coal, were in no rush to stock up aggressively. Coal stocks at major coastal and inland power plants were not low. Although certain restocking demand existed, large-scale purchases were constrained by elevated prices.

Coal consumption at plants has yet to pick up significantly, with daily coal burns at power plants under six major coastal power groups standing at 757,600 tonnes on May 14, Sxcoal data showed. The figure was down 2.6% on the day yet up 2.6% on the week. Many generators still took a measured buy approach.

In addition, power plant consumption is expected to go down further, as a wide-ranging rainfall is unfolding across central and eastern China over May 15-19. A cold air mass will also ease the heat that baked northern regions, sending temperatures dropping from recent highs or even below seasonal norms. The cooldown will weigh on residential air-conditioning usage.

Despite the softening demand signals, most producers were holding their ground. Mine inventories remained manageable, and expectations for the upcoming peak summer are keeping any discounts in check.

With the portside market showing resilience and a leading miner lifting selling prices for third-party coal at Hunaghua port, some railway station-based traders slightly increased replenishments. A handful of mines with better pricing edges and premium thermal coal grades even attracted more trucks and nudged prices higher.

Moreover, the optimism was backed by potential supply-side disruptions. Intensified safety inspections are set to start with broad coverage in Shanxi, probably tightening local coal output. Yet, the broader supply remains relatively ample, given a policy push.

As a result, the domestic thermal coal market settled range-bound. Regionally, some miners in Inner Mongolia's Ordos raised washed coal prices by 3-4 yuan/t, with washed 5,700 Kcal/kg NAR slack coal (S 0.4%) up 4 yuan/t to 607 yuan/t, ex-washplant with VAT. "Firm portside prices help buoy the mine-mouth market. Buyers are less likely to completely stop purchases," a local source said.

Market mood was cooler elsewhere in the region. Chemical-purpose 5,700 Kcal/kg NAR slack coal (S 0.52%) fell 5 yuan/t to 595 yuan/t, mine-mouth with VAT, and 4,500 Kcal/kg NAR slack coal (S 0.8%) was heard traded at 300 yuan/t, down 20 yuan/t. These price declines were largely attributed to moderate buying enthusiasm among downstream buyers.

A similar mixed trend was observed in Shaanxi's Yulin. 5,900 Kcal/kg NAR chemical coal (S 0.22%) gained 5 yuan/t to 645 yuan/t, mine-mouth with VAT, as coal trucks queued steadily and sales showed no signs of slackening. But a major miner put 9,000 tonnes of mixed coal for auction at a weighted average price of 533.67 yuan/t on May 15, down 13 yuan/t from the last auction.

On May 15, Sxcoal assessed Datong 5,500 Kcal/kg NAR coal at 695 yuan/t, mine-mouth with VAT, down 1 yuan/t on the day, yet Ordos 5,500 Kcal/kg NAR material gained 1 yuan/t to 572 yuan/t. Yulin 5,800 Kcal/kg NAR grade rose 3 yuan/t to 646 yuan/t.