Newcastle coal futures slipped below $140 per tonne, retreating from the over month-high of $145 reached in early July. Traders remained on the lookout for fresh developments regarding China’s stimulus measures, as the country’s disappointing economic data raised concerns about a potential slowdown in the world’s second-largest economy. The most recent inflation reports indicated that China’s consumer prices remained stagnant in June, marking the lowest rate since February 2021 and falling short of the market consensus of a 0.2% increase. Moreover, factory gate deflation exceeded expectations, with the index dropping by 5.4%, the most significant decline in over seven years. China’s demand for coal has been sustained by the government’s efforts to mitigate power shortages, especially in light of severe heatwaves and ongoing drought in certain regions that have resulted in reduced hydropower generation.
