Thermal Coal

Production area Mine-mouth thermal coal prices continued trending upwards in major producing regions. A few mines that have completed or are about to finish monthly production tasks suspended or cut production. Pre-National Day holiday restocking from metallurgical and chemical plants remained stable, and railway station-based traders shipped actively, helping achieve a rough balance between production and sales at most mines. Unabated truck loadings encouraged a few miners to slightly raise prices.

Northern port Traders' offer prices hovered high, while downstream buyers showed low interest in inquiries, leading to sparse transactions. Coal stocks ramped up rapidly at northern ports amid frequent closures, coupled with expected reductions in coal consumption at power utilities, dampening traders' confidence. They opted to speed up clearing existing stocks. Despite weakening preholiday restocking, some participants believed that portside prices are less likely to slump, given firm mine-mouth thermal coal prices and sustained losses in port-bound shipments.

Import market Bidding prices to Chinese utility tenders returned to last week's levels. The lowest bid for 3,800 Kcal/kg NAR coal stood at 498 yuan/t in October delivery and 492 yuan/t in November delivery, DDP with VAT. Traders expressed concerns about potential post-holiday price declines. Lower bidding prices for far-month cargoes reflect somewhat bearish expectations and impacts of the depreciation of the Chinese Yuan.

Coking coal

Buoyed by favorable macroeconomic policies, coking coal and coke markets continued to warm up. Some coke and steel producers are still in the process of preholiday restocking, shoring up coking coal prices in the short run. Online auctions by major mines in Shanxi saw more price rises than falls. Some miners adjusted up offer prices by 20-30 yuan/t amid improved mine-mouth sales, while most miners maintained prices stable. Middlemen still exercised caution in purchases, with some traders focusing on destocking to avoid potential risks.

Affected by earlier influx of low-priced seaborne import coal, Mongolian coking coal became less competitive. Coal inventories at supervision warehouses at China's Ganqimaodu border port stayed high. Downstream buyers also held back on purchases. Spot offers for Mongolian 5# raw coal under long-term contracts ranged 1,130-1,150 yuan/t, ex-stock Ganqimaodu with VAT, with actual transactions remaining subdued.

Met coke

Finished steel prices surged stimulated by multiple favorable policies. Some speculative traders entered the market, together with improved end-user demand, further boosting steel sales and accelerating stock depletion. Steel mills made restocking actively in the run-up to the National Day holiday. Most coke producers reported smooth offtakes and held low inventories. Despite recovered profits after the materialization of the second coke price hike, coking plants were still running around break-even points and not eager to lift output. Coke prices are expected to further tick up with tight supply.