China's PCI coal market remained quite stable during the past week, with the rebounding steel product prices countering falling molten iron production amid steelmakers' overhauls.

On December 16, the Fenwei CCI index for Changzhi PCI coal (A 11.5%, V 12, S 0.5%) was 1,000 yuan/t, ex-washplant with VAT, remaining flat week on week.

Fenwei assessed Yangquan PCI coal (A 10%, V 8, S 0.6%) in Shanxi at 1,096 yuan/t on the same day, also unchanged from the week before; the assessment for Jiaozuo PCI coal (A 12%, V 7, S 0.3%) in Henan stayed flat at 1,147 yuan/t.

Steel product prices and ferrous products' futures prices all rebounded following the Politburo meeting and central-government economic meeting, cheering market sentiment up. However, declines occurred in the second half after sentiment gradually waned.

However, steelmakers remained prudent in restocking PCI coal considering still unclear market trend, and mills continued facility overhauls, resulting in persistent declines of molten iron production, capping rebounds of PCI coal prices.

Data showed the price of Shanghai HRB 400 rebar (20 mm) stood at 3,430 yuan/t on December 16, falling 10 yuan/t from the week-ago level, while Shanghai hot-rolled coil (3.0 mm) rose 10 yuan/t on the week to 3,580 yuan/t. Tangshan Q235 billet price didn't change week on week at 3,100 yuan/t.

This week, PCI coal prices tend to keep steady as coking plants' sporicidal purchases for winter restocking could provide certain supports.