OREANDA-NEWS. August 11, 2014. Trade sources said that China Shenhua Energy Co Ltd , the country's top coal miner, has raised its August coal prices after two consecutive months of cuts, in a move that may offer some relief to an industry suffering big losses.

According to the country's coal association, with prices eroded by falling demand growth, a worsening supply glut and a war on smog, the price hike by Shenhua comes as more than 70 % of China's coal firms are already making losses in the H1.

Traders said that Shenhua raised prices for benchmark coal with heating value of 5,500 kcal/kg by CNY 4 to CNY 489 for August, while its tier-1 quality coal (5,800 kcal/kg) was unchanged at CNY 535 a tonne.

A Shanghai-based trader said that "We're about to enter a seasonal demand lull and orders will start to fall by mid-August. If the big boys don't find ways to support the market, prices will drop further and the outlook will be very, very grim."

Hit by persistent oversupply and slackening demand, China's benchmark thermal coal prices have been steadily falling since the start of the year and are now hovering at their lowest in more than 6 years, putting more and more miners under duress.

Industry website China Coal Transport and Distribution Association (CCTD) reported, taking the lead from the industry leader, China National Coal Group, the country's second-largest producer, swiftly followed suit and hiked prices by a similar amount for August delivery.

Shenhua and China Coal could not be reached for comment.

Traders said that the brief increase in spot demand from power plants during the searing summer would offer a reprieve for miners, with industry data from CCTD showing that average daily coal consumption by major coastal power plants has risen to about 700,000 tonnes from about 600,000 tonnes in mid July.