The following is from Platts....
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Some Chinese power plants that are rebuilding their coal stocks have opted to buy a few low-CV cargoes to blend with their existing high-CV and high-sulfur coal, a Fujian-based trader said.
"Downstream power plants have become more active in purchasing, but their purchase prices are still low," a Guangdong-based trader said.
A source at a Shanxi-based coal mining and trading company said that his company had recently resumed its long-term contracts with overseas suppliers although volume was limited.
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I think this is further indication that the coal markets are improving world-wide, albeit the recovery remains tepid. In addition, the Chinese going back to overseas suppliers implies that an improvement in the seaborne coal markets may not be too far off.
An improvement in the thermal coal markets domestically along with a more solid footing in the seaborne markets may be the catalyst to reduce the short interest in coal shares.... which is at an all time high.
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Some Chinese power plants that are rebuilding their coal stocks have opted to buy a few low-CV cargoes to blend with their existing high-CV and high-sulfur coal, a Fujian-based trader said.
"Downstream power plants have become more active in purchasing, but their purchase prices are still low," a Guangdong-based trader said.
A source at a Shanxi-based coal mining and trading company said that his company had recently resumed its long-term contracts with overseas suppliers although volume was limited.
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I think this is further indication that the coal markets are improving world-wide, albeit the recovery remains tepid. In addition, the Chinese going back to overseas suppliers implies that an improvement in the seaborne coal markets may not be too far off.
An improvement in the thermal coal markets domestically along with a more solid footing in the seaborne markets may be the catalyst to reduce the short interest in coal shares.... which is at an all time high.
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