Chinese domestic thermal coal prices have fallen further, fuelling speculation that some power utilities might be looking to walk away from existing contracts for imported material, sources said Monday. “I have heard rumours maybe that some power plants in China are renegotiating or defaulting on some shipments. But that is just a rumour,” a Singapore-based source said. “If I had sold February arrivals [cargoes of 5,500 kcal/kg NAR imported coal] above $84/mt, I would be slightly panicking as I think the Chinese expect levels to get back down to about $79-80/mt CFR south China or maybe lower,” he added. Late last week, a Singapore-based trader said falling domestic prices could lead to some possible defaults by Chinese imported thermal coal buyers on existing contracts in the coming weeks. Capesize cargoes of 5,500 kcal/kg NAR Australian coal were heard being offered at around Yuan 620/mt […]