Thermal Coal

Production area Mine-mouth thermal coal prices saw a 5-10 yuan/t rise at some mines, partly attributed to modest supply tightness caused by year-end maintenance or shutdowns at a few mines after reaching production targets. Narrowing decline in portside prices, along with a leading mining group's stable third-party coal buy prices, encouraged some railway station-based traders to make small purchases, which helped clear stocks and prompted price growth at a few mines. However, overall demand did not recover significantly, evidenced by moderate offtakes at most mines. The near-term mine-mouth prices still lack robust upward strength.

Northern port Growing price-cut resistance curbed further price drops in the portside market. As the year-end approaches, more mines halted operations after completing annual tasks, leading to reduced coal arrivals at northern ports. Increased inquiries to cover short positions approaching the month-end prompted sellers to uphold prices, easing the decline in transaction prices. Some traders, enduring prolonged losses, were reluctant to undersell. But whether this will provide sustained support for portside prices in the short run remains unclear.

Import market The seaborne import market stayed quiet during the Christmas holiday. Bidding prices to domestic utility tenders continued to fall. Recent slump in international seaborne freight rates led some traders to lower prices, thereby partially reducing the bid-ask spread. Traders expected post-holiday import coal prices to gradually stabilize following the domestic market.

Coking coal

More coking coal mines suspended or capped production after the completion of annual output targets or for safety concerns. However, these reductions are expected to be offset by production recovery after the New Year's Day, leaving the overall supply almost unaffected. End-users were keen on pushing down raw material prices, with major steelmakers asking for the fifth coke price cut on December 25. This move dampened sentiment in coking coal and coke markets. Coke producers refrained from shipments, and more traders cut prices to boost sales. Coking coal miners facing offtake difficulties continued to lower offer prices.

Affected by heavy destocking pressure, Mongolian coal inflows at China's Ganqimaodu border port stayed low recently, with only 384 trucks passing through on December 25. Weakening coke prices further depressed trading activities at the border port, adding to traders' pessimism. Spot prices for Mongolian 5# raw coal prices stood at around 930-950 yuan/t, ex-stock Ganqimaodu with VAT.

Met coke

Many steelmakers initiated the fifth coke price cut of 50-55 yuan/t on December 25, effective December 27. Molten iron output continued to slide amid frequent blast furnace maintenance. Medium to high coke stocks at steel mills left limited room for additional replenishment, eroding steel producers' restocking enthusiasm. Most coking plants ran normally thanks to rational profits following persistent drops in feed coal prices, reporting a slight stock accumulation. The coke market is likely to weaken further amid relatively ample supply.