China's coking coal market opened this week on a weak note, weighed down by sluggish purchase interest and persistent negative sentiment in the coke market. Insufficient demand release overrode moderate supply-side support, continuing to cloud the overall market.

Several coal mines in major producing provinces ceased operations, citing completion of annual output targets or safety production priorities at year-end, leading to short-term supply shrinkage.

In Xiangning county of Linfen, Shanxi, two mines with a combined capacity of 2.7 million tonnes per annum (Mtpa) have shut down for facility maintenance, sources told Sxcoal. A third mine in the vicinity, with a capacity of 7.5 Mtpa, is scheduled to halt production soon, with restart dates tentatively set for January 3 or later.

Meanwhile, two other mines in Linfen's Guxian county that had previously suspended activity remain offline and are unlikely to resume before New Year's Day.

Despite the tightening supply situation, coking coal price movements remained generally soft across the board. Some producers attempted to stimulate interest through modest price cuts or volume-based discounts, but the response was lukewarm.

Some offers for Xiangning low-sulfur lean coal (S 0.5%, A 10%, GRI 70) stood at 1,390 yuan/t on bankers' draft and 1,380 yuan/t in cash, both ex-washplant with VAT. Another 10-40 yuan/t discounts were available for large purchases, effective December 27.

"Even with the discounts, buyers are not responding," noted a Shanxi-based miner source. "Only a few customers are picking up small volumes, and our inventories are building up again. Prices might have to come down further."

Demand continued to be restrained as coke producers largely preferred on-demand procurement over proactive restocking, especially at a time when many participants anticipated a fourth round of coke price declines in the days ahead.

Several steelmakers in Tangshan, Xingtai, and Shijiazhuang of Hebei province, and Tianjin city decided to lower purchase prices of wet- and dry-quenching met coke by 50 yuan/t and 55 yuan/t, respectively, effective January 1, 2026.

"There is no significant sales pressure, but also little incentive to build coal stocks," said a coke maker source based in Shanxi. "We're running at over 90% capacity, and current coke inventories are manageable. Essential coal procurement for immediate needs is enough, with inventories available for 2-3 days of usage at present," he added.

"Replenishment hasn't started yet and is to begin post New Year's Day, before coking coal prices bounce back," one Shaanxi-based coke producer source stated.

The lack of market directional clarity also weighed on traders and wash plants. A Shanxi-based trader source disclosed that they have not signed any new contracts in recent days. "Coking plants are pushing hard for lower prices. Those of us who already have stock don't want to undersell cargoes, and mines are reluctant to cut prices further."

Meanwhile, a source with a Shanxi-based washing plant reported a noticeable slowdown in inquiries in recent days. "Coal stocks are piling up again," he noted.

In the import market, key Chinese border ports with Mongolia were closed on December 29 for Mongolia's Independence Day, set to resume on December 30. China's Ganqimaodu port saw thin trading liquidity, with traders offering at elevated prices while downstream buyers displayed less participation.

Prices of Mongolian 5# raw coking coal stood at 970-1,000 yuan/t, ex-stock Ganqimaodu with VAT.