...Prices Stabilising after Sharp Fall: The benchmark Newcastle 6,000kcal/kg coal price has stabilised around USD135/tonne (t) since July, after losing 70% in 1H23. The stabilisation follows mild rebound in regional liquefied natural gas (LNG) prices and modest seasonal recovery of coal demand. Coal-fired power plants currently have a slight cost advantage over gas-fired ones in Asia, against none in April-May. The price premiums of Newcastle 6,000 over European and Chinese benchmarks have contracted to 23% and 2%, respectively, from around 100% at the beginning of 2023. Weak Hydropower Supports China Demand: China's benchmark Qinhuangdao 5,500kcal/kg rebounded to around CNY840-850/t in July and August, after a sharp correction to a low point of CNY759/t in 1H23. The modest price recovery was mainly a result of stronger seasonal demand for electricity in the summer, which was further supported by weak hydropower generation. Waterflow along the Yangtze River averaged about 23% weaker in 7M23...
