Some coking coal miners tentatively raised prices in China's main production areas, backed by a moderate increase in restocking from low-stocked coking plants. Yet the broader sentiment remained subdued, as abundant supply extended a broader downward price trend.

Signs of tightening coal supply emerged in some regions. A number of miners halted operations after completing their annual production tasks, and several of the others scaled back output due to underground issues. Some miners also planned shutdowns for maintenance near the month-end with the New Year's Day drawing close.

A Shanxi-based miner revealed plans for a three- to four-day shutdown at month-end, having completed its annual production targets.

Coking plants, experiencing continued consumption and previous intake controls of feed coal, witnessed mid- to low-level raw material stockpiles. This, coupled with an expectation of near-term supply shrinkage and the upcoming holiday, prompted coke producers to ramp up replenishment.

Improving transactions encouraged some miners to adjust up their offer prices marginally. For instance, competitively priced coal grades in Luliang of Shanxi registered modest increases, thanks to increased procurement.

One Lishi-based miner in Luliang lifted offers by 20-50 yuan/t on December 22. The new prices for high-sulfur lean coal (S 2.5%, A 9.5%, GRI 68) and mid-sulfur lean coal (S 1.6%, A 9.5%, GRI 60) came in at 1,000 yuan/t and 1,130 yuan/t, respectively, up 20 yuan/t and 50 yuan/t, both on an ex-washplant with VAT basis. High-sulfur primary coking coal (S 1.8%, A 11.5%, GRI 90) rose 30 yuan/t to 1,130 yuan/t.

However, participants still doubted the sustainability of upward price momentum. While attempts at coking coal price hikes surfaced, they remained isolated and largely dependent on coal quality and local market dynamics.

The improvement in online auctions was also uneven and varied widely by coal specification. A Luliang-based miner auctioned low-sulfur primary coking coal (S 0.8%, A 10.5%, GRI 85) at 1,500 yuan/t with a 50% transaction rate on December 22, compared to the previous session seeing no same-grade cargo traded on December 18.

Another miner in the region sold 2,000 tonnes of primary coking coal (S 2.8%, A 10.5%, GRI 85) out of the total 20,000 tonnes, at 1,220 yuan/t, a 2.5 yuan/t drop from the average hammer price late last week.

These mixed results underscored a market in search of direction. Buyers remained price-sensitive, especially as a third coke price reduction is highly likely to be implemented earlier this week.

On December 22, the CCI index for Shanxi low-sulfur primary coking coal was steady from late last week at 1,575 yuan/t, ex-washplant with VAT. CCI indexes for mid- and high-sulfur primary coking coal stood stable at 1,230 yuan/t and 1,219 yuan/t, respectively.

3rd coke price drop realizes

Chinese metallurgical coke producers accepted the third round of price reductions ranging 50-55 yuan/t on December 22, after being asked by steelmakers late last week. This took the aggregate decline to 150-165 yuan/t since the start of December.

One large steel company in northern China's Hebei province lowered purchase prices of top-charging coke by 50 yuan/t and 55 yuan/t, respectively, for wet- and dry-quenching coke, Sxcoal learned. The new price for Grade I wet-quenching coke fell to 1,610 yuan/t and Grade I dry-quenching coke to 1,975 yuan/t, delivered basis with VAT and on banker's draft.

In eastern China's Shandong province, a major steelmaker also trimmed coke buy prices by the same amount. The new price for Quasi Grade I wet-quenching coke slid to 1,445 yuan/t and Quasi Grade I dry-quenching coke to 1,695 yuan/t, delivered basis with VAT and on banker's draft.

On December 22, the CCI assessments for Luliang and Tangshan Quasi Grade I Dry-Quenching Met coke fell 55 yuan/t from last Friday to 1,530 yuan/t and 1,680 yuan/t, ex-plant with VAT, respectively, while that for Rizhao Quasi Grade I Met coke was stable at 1,500 yuan/t, FOB with VAT.