Thermal coal

Production area Most miners maintained thermal coal prices stable, while a few mildly adjusted prices based on sales. Some miners saw their inventory pressure alleviate with increasing trucks arriving for loading amid improved road condition for transportation, and several miners raised prices in response. However, the overall arrivals of long-haul trucks remained low at some mines due to regional logistics constraints, and high stock pressure forced them to cut prices to spur sales. The near-term prices are expected to be range-bound.

Northern port The portside sentiment was little changed. Traders maintained offer prices stable and showed an increased willingness to sell, while downstream users still sought price reduction amid tepid demand, resulting in few transactions at high prices. Some participants expected prices to remain rangebound in the near term, considering negative factors like high portside stocks. Lukewarm downstream demand would continue to counter positive factors including cost support and traders' reluctance to sell at low prices.

Import market Trading atmosphere was flat. The settlement prices for mid- and high-CV coal were generally index-linked. There was a continued lack of arbitrage room for importing Indonesian 3,800 Kcal/kg NAR coal, with the awarded prices for domestic utility tenders hovering at around 550 yuan/t, DDP with VAT, while offer prices were $59-60/t and over $60/t FOB respectively for Supramax and Panamax cargoes. Importers said domestic utilities started to seek supplies with late-January and early February laycan, but demand was not strong enough to drive up prices.

Coking coal

The overall coking coal supply was restrained as safety checks remained tight due to frequent coal mine accidents, and a few major mines cut production after completing annual targets. While most mines did not face obvious inventory pressure, some saw stocks accumulate as the previous snowfalls hindered transportation and the demand retreated. Considering coking coal stocks fell at some coking plants due to the previous transportation disruption, miners generally maintained firm offers, in anticipation of continued restocking demand. Primary coking coal prices remained upbeat, with the mainstream prices of some low-sulfur grades rising to 2,600-2,650 yuan/t, marking about 400 yuan/t rise from the start of November. Prices of blending coking coal, however, remained weak. Miners expected coking coal prices to stay firm at high levels as a whole in the near term.

Imported Mongolian coal inflows through China's Ganqimaodu border port recovered to high levels. But the overall transactions were still subdued at the border port due to a lack of buying appetite from downstream users. Traders slightly cut offer prices for Mongolian 5# raw coal to around 1,650 yuan/t, ex-stock with VAT.

Met coke

Coke-making profit marginally improved as coking coal prices softened, yet most coking plants still preferred to maintain the previous production. Coke inventory was on track to decline along with improved transportation. Rigid demand from steelmakers slid due to increased maintenance on blast furnaces, as weakened steel products prices squeezed steel-making margins. However, mills still maintained restocking demand due to low stocks. Coke supply and demand currently strike a balance, which is likely to keep coke prices stable in the near term.