Newcastle coal futures were near $120 per tonne in January, near their lowest in 10 months, as ample supply offset the strong demand from top consumers. The latest data showed that China’s coal output averaged 14.27 million tons per day in November, the highest on record, accelerating sharply from the 12.28 million tons per day in the previous month to set up another record-breaking year of coal production in 2024 for the world's top producer. The development occurred as utilities already deal with record-high coal inventories, which rose by 12% in the two months ending October. In the meantime, concerns that stimulus from Beijing will not be able to trigger growth weighed on the record-high thermal consumption in 2024. Additionally, demand was further pressured by ample rainfall in key Chinese manufacturing hubs, allowing hydroelectric power to be preferred over coal power.