Thermal coal

Production area Mine-mouth thermal coal prices ticked up in major producing regions, supported by active restocking from metallurgical and chemical plants. Bullish sentiment further widened following rising portside prices and higher temperatures. Traders and washing plants showed increased interest in purchases, boosting truck loadings at some mines. This encouraged miners to raise prices by 5-20 yuan/t.

Northern port Portside sentiment warmed up, with upticks in settled prices observed. Traders slightly lifted offer prices, in anticipation of increased demand alongside rising temperatures spurring higher coal consumption. Growing mine-mouth prices also played a part. However, most downstream buyers and speculative traders only purchased on a need-to basis, leading to continued stock accumulation at northern ports. This added to participants' doubts about the sustainability of price gains.

Import market Foreign miners were firm on offering prices, while awarded prices for far-month tenders issued by domestic utilities dipped moderately. But the downside likelihood may be limited due to a lack of far-month cargoes. Spot resources may increase in the near term.

Coking coal

Favorable macro policies fueled bearish sentiment in the coking coal market, improving offtakes at a few mines. Downstream buyers were still cautious in purchasing in the wake of the first coke price cut, posing challenges to online settlements. Nevertheless, trading prices for certain premium low-sulfur grades of the material climbed 40-45 yuan/t, partly due to rigid demand and surge in the futures market. This also contributed to 50 yuan/t price rebound forn similar-quality grades in producing areas.

Coke price reduction dampened Mongolian coal transactions. But speculative demand increased along with the surge in futures prices. However, some traders still temporarily retreated from the market.

Met coke

The first coke price reduction, amounting to 100-110 yuan/t, has been fully materialized. Favorable policies in the real estate sector pushed up steel products prices, motivating steelmakers to raise output amid recovered profits and releasing demand for coke. Coking plants maintained high-level output as the impact of coke price cut was partly offset by the decline of feed coal prices, and they did not face inventory pressure. Near-term coke prices may not slump dramatically, considering broadly balanced supply-demand fundamentals.