Coal futures extended losses to fall below $130 per tonne, marking their lowest level since June 2021, primarily driven by concerns of oversupply and persistently subdued demand from China, the largest consumer of coal. In response to the falling prices, some Chinese steelmakers have increased their production levels, while data indicated that key coal-fired power plants in China have accumulated record-high stockpiles by the end of May. On the demand side, China’s coal imports have declined in May, reflecting the country’s sluggish economic recovery and weakened demand from the power and steel sectors. Meanwhile, in Europe, overstocking and lower-than-anticipated winter demand have led to a near cessation of coal imports during the first quarter of 2023.
