China's domestic coking coal market has continued to weaken slightlysince early July, with prices having shed as much as 6% so far this month.

Free-on-truck (FOT) prices of coking coal (ash content no more than 10%,volatile content no more than 25%, sulfur less than 1%, caking property index:G75-80) in Shanxi and Hebei slipped by Yuan 30-40/mt to Yuan 1,350-1,460/mt($199.1-215.3/mt, including 17% VAT) by mid-July, compared with a range ofYuan 1,420-1,550/mt in early July.

China's domestic thermal coal market has stabilized in the past weekdespite the summer peak season of electricity and hence thermal coalconsumption, according to industry sources.

FOT prices of 5,500 kcal/kg Shanxi coal at Qinhuangdao port are in arange of Yuan 750-760/mt ($110.60-$112.10/mt) basis NAR including 17% VAT. Prices were at Yuan 555-575/mt a year earlier.

Shanxi coal with a heating value of 5,800-6,000 kcal/kg are also stablein a range of Yuan 780-790/mt. Similar coal was traded at Yuan 600-610/mt ayear earlier.

Coal stocks at the port stood at 5.93 million mt on July 19, similar to5.97 million mt on July 15, slightly up from about 5.6 million mt at the endof June. Stocks dipped to their lowest level this year at 4.83 million mt onApril 27. These levels compare with a norm of 5-6 million mt, a record high of9.22 million mt seen in mid-November 2008 and an all-time low of 3.5 millionmt in mid-April 2009.