China's coal giants including Shenhua, ChinaCoal, Yitai, and Datong Coal have hiked their coal prices for June by a range from 2 yuan/tonne to 7 yuan/tonne despite continuous gloomy coal industry. Insiders attributed the price hike to relatively balanced supply and demand on elimination of inefficient capacity driven by policy adjustment and market competition.
Besides, coal demand is rebounding on the coming summer peak for consumption, and downstream replenishment of coal stocks backed up coal price rise. As weather in South China would see continuous rainfall, coal prices are unlikely to surge in short term.
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