Thermal coal

Production area Mine-mouth thermal coal market remained generally stable in production areas, with slight price corrections observed at a few mines. Long-haul coal trucks reduced due to temporary highway closure caused by snowfalls, limiting outward delivery from some mines. A few miners cut prices in response and thus reported improved sales. Thermal coal supply is likely to contract as some miners may reduce output due to tightened safety checks and completion of their production targets. Downstream users were predominantly making need-based purchases and the overall demand was not robust.

Northern port The port-side thermal coal sentiment continued to improve. Offer prices remained firm and traders became more willing to sell stocks after price rises. Downstream users made moderate purchases to meet rigid demand, leading to slight increase in settlement prices. Some participants expected the near-term price rise space to be restrained, as power plants presented average demand with flat acceptance to the current prices and the portside coal stocks were expected to further accumulate due to low outflows resulting from strong wind-caused port operation suspension.

Import market The imported coal market stayed generally quiet, with offer prices showing mild sideways movement. Views on the near-term market were divided among importers. Some anticipated price increases, citing potential support from ongoing new cold waves, while others expressed caution due to high inventories and varied bidding prices to domestic utility tenders. There were calls for traders to hasten destocking efforts amidst this uncertainty.

Coking coal

Encouraged by the landing of the third round of coke price hike, the resultant improvement of coke-making profit, and snowfall-induced impact on transportation, coking plants presented improved buying appetite. As a result, prices of backbone coking coal grades further increased, with some online low-sulfur primary coking coal auction settlement reaching a year-to-date high of 2,645 yuan/t. However, blending coking coal trades still lacked strength, with prices keeping moving downwards and some auctions being aborted.

Mongolian coal inflows through China's Ganqimaodu border port further increased, with 1,336 trucks clearing customs on December 12, a new high seen in latest three months. Wait-and-see sentiment thickened among downstream users, resulting in tepid trades. Mongolian 5# raw coal was offered at 1,650-1,700 yuan/t, ex-stock Ganqimaodu with VAT.

Met coke

The third round of 100-110 yuan/t coke price hike was fully materialized, bringing the total increase to 300-330 yuan/t since November. Rigid demand from steel mills reduced amid increased maintenance schedule for blast furnaces in the off season. However, some mills still faced with shortage of the material as the recent snow-affected logistics hampered their restocking efficiency. Despite the third price hike, coking plants maintained normal production enthusiasm, owing to environmental restrictions, high coking coal costs and restrained feed coal arrivals during adverse weather. The overall coke supply remained slightly tight, which would back coke prices to stay generally firm.