THE RUN IN to Chinese New Year (CNY) has seen Chinese domestic steam coal prices fall further. Any thoughts that the market would be controlled to hover just below the price set by the government's newly imposed price cap appear misplaced. Currently, prices for 5,500kc NAR material are RMB26/t below the RMB800/t cap. Demand remains weak, whilst stocks at ports and power stations are still high. The outlook looks like maintaining its bearish mood now until after the CNY celebrations, and even then few are expecting a rapid shift in sentiment.
展开▼
