China's thermal coal prices are rebounding as a mild start to summer finally gives way to hotter weather, boosting air-conditioner usage and power demand.

The price recovery comes after weeks of subdued demand during an unseasonably cool early summer that left inventories elevated at ports and power plants. China's thermal coal benchmark at Qinhuangdao port has climbed from recent lows as utilities replenish stocks ahead of peak cooling season.

Meteorological forecasts indicate sustained high temperatures across key industrial regions including the Yangtze River Delta and Pearl River Delta, driving power demand to seasonal records. Grid operators have issued load warnings as air-conditioner usage surges in residential and commercial sectors.

The heatwave arrives as hydroelectric output remains constrained in southwestern provinces, increasing reliance on coal-fired generation. Analysts expect the price strength to persist through August if temperature anomalies hold, though ample domestic production and import quotas may cap upside.