Thermal coal

Production area Thermal coal prices were range-bound, with a few miners increasing or cutting prices by 10-20 yuan/t based on actual sales. The overall supply slightly tightened as some miners cut or halted production after completing their monthly targets, in addition to frequent safety checks. Downstream users, mainly maintaining on-demand purchases, contributed to a rough balance between production and sales at some mines. Miners noted a lack of support to price hike in the short run, as well as limited pressure for price to move downward.

Northern port Demand remained lukewarm at northern ports, and downstream users continued to seek price reduction. But, offer prices were relatively firm with little change compared with late last week, resulting in continued slack transaction. Participants expected thermal coal prices to be comparatively stable in the run-up to the National Coal Trade Fair. Cost support was expected to prevent significant price declines, while weak demand was seen as a constraint for potential upward movement.

Import market The imported coal market maintained stable overall. Chinese power utilities reduced tenders, while foreign miners maintained firm offers. Despite existing short-covering demand, low counteroffer prices still led to a trade stalemate. The Panamax Indonesian 3,800 Kcal/kg NAR coal was traded at $60/t FOB. Traders' bidding price to a domestic power utility for 3,800 Kcal/kg NAR coal was at 549 yuan/t, DDP with VAT.

Coking coal

Safety inspections intensified at mining areas following frequent mine accidents, prompting miners to prioritize safety over production approaching the end of the year. This has resulted in supply strain in production areas. Coking plants showed increased interest to procure high-priced coking coal grades after some mills accepted the second round of coke price hike, contributing to an upward shift in coking coal prices. Some miners started a new wave of price hike, with primary coking coal and lean coal prices in Xiangning of Linfen in Shanxi rising by 70-80 yuan/t on November 28. Prices of low-sulfur primary coking coal in the area rose to 2,550 yuan/t, marking an increase of 360 yuan/t so far in November.

The extended rise in short-haul transportation fee added support to the imported Mongolian coal at China's Ganqimaodu border port. Domestic end-users also became more active in enquiries. However, the actual transactions remained subdued by losses at coking plants. Mongolian 5# raw coal was offered stable at 1,680-1,720 yuan/t, ex-stock with VAT. Trading activities are expected to improve moderately after the second round of coke price hike fully materializes.

Met coke

Coke market was robust, with some steelmakers in Hebei and Shanxi agreeing to the second round of coke price hike. Persistent rise in coking coal prices increased coke-making costs, contributing to losses at coking plants. Some cokemakers further tightened production curbs in response, leading to a mild reduction in coke supply. Steelmakers remained active in restocking but their coke arrivals were curbed by tight supply. The near-term coke supply would remain constrained, as more coking plants are hesitant to sell.