The coal market in northern China’s Inner Mongolia, the country’s biggest coal production base, has recently improved slightly, after a prolonged weakness since the beginning of this year, market sources said.

Despite still low transactions, most local miners kept their offer prices steady in the past week, and some even raised their capacity utilization, expecting further demand recovery.

The free-on-rail price of 5,500 Kcal/kg NAR coal at Wuhai and 5,000 Kcal/kg NAR coal at Baotou is presently offered at 305 yuan/t and 260 yuan/t with VAT, steady week on week and down 5 yuan/t and 10 yuan/t month on month, respectively, showed data from China coal Resource.

The positive changes in the autonomous region’s coal market came after stabilizing of coal prices at the coastal market over the past half a month.

On April 8, the Fenwei/Platts CCI1 Index for domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was assessed unchanged on day at 520 yuan/t with VAT, FOB, up 1.5 yuan/t week on week.

Coal prices in Inner Mongolia have been on decline since the beginning of 2014, with local miners grappling with overcapacity, high cost, tepid demand and shrinking bank credit amid a slowing economy.

Many mines, which were remote from rail lines and coastal ports, had to depend on expensive truck transport to haul coal to northern ports.

Lots of small local mines have been forced to close operation, while large ones, which operated at losses to maintain market share, have chosen to cut staff’s salary by 20-50%.