China coal short-term outlook March 2018: supply recovery and weaker demand drive 'reasonable' prices
In March, thermal and metallurgical coal prices fell 13% and 3% month-on-month, respectively. The largest driver of the price drop was improving supply. But with the heating season over and residential power usage dropping, the growth rate in coal production will be moderate in Q2. As such, we will see prices come down further, albeit at a slower rate, to within the range the governments deems reasonable.