Domestic prices in China are continuing to track upward, with Shenhua reportedly due to raise prices for all qualities by $US1.63/t ($A1.71/t) next week.
Current prices for thermal coal stand at $US84.4/t ($A88.7/t).
“The spike in domestic prices bodes well for a strengthening Newcastle futures price in the near term,” ANZ said.
Coking coal was also flat for the week, with stockpiles at port and mill remaining high. Four major ports in northern China are reporting inventories at 7.42Mt compared to 5.3Mt at the same time last year, according to ANZ.
Despite the sharp move upwards in Chinese PMI data, mills remain cautious, waiting for the trend to become clear before engaging in any significant restocking activity.