Coal Retreats from Multi-Month Highs

2025-12-15 14:19 By Felipe Alarcon 1 min. read

Coal fell below $110 per ton, retreating from multi-month highs amid a softening in demand across China, while supply conditions and inventories have eased sufficiently to remove near-term scarcity.

On the demand side, thermal power generation fell sharply in November, with coal- and gas-fired output down 4.2% on the month and slightly negative year to date, reflecting weaker industrial activity and reduced construction-related coal use as the property downturn drags on.

At the same time, wind and solar output rose more than 20% year on year, absorbing incremental electricity demand and displacing coal burn during what would normally be a seasonally supportive period.

On the supply side, coal inventories at Chinese power plants stand near 230 million tonnes, equivalent to roughly 35 days of consumption, while steady domestic output and ample port stocks have reduced the need for aggressive spot buying.



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