Weekly Recap: Chinese met coal and coke market 10 Jan. Click to read more

Coking Coal

Demand

Coking coal demand remains weak, driven by falling steel prices and low pig iron output. Most coke plants are limiting purchases to maintain minimal inventory, especially with the holiday season approaching. Downstream buyers are hesitant, leading to limited transactions and subdued market activity.

Supply

Supply has steadily recovered in key production regions like Shanxi and Inner Mongolia. However, increasing stockpiles at mines indicate oversupply. Auctions show declining prices, and many resources remain unsold. Imported Mongolian coal is also facing weak demand, with daily customs clearance increasing but transactions largely stagnant.

Prices

Prices for coking coal continue to decline under market pressure. In Shanxi, low-sulfur primary coking coal is priced at 1,420 RMB/ton, marking a significant drop since October. Imported Mongolian coal is trading at 900–910 RMB/ton, down 10 RMB/ton from the previous week. Auction prices also reflect the ongoing bearish sentiment.

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Met Coke

Demand

Demand for met coke is subdued as steel mills reduce production due to shrinking profits and weaker steel prices. Many mills are drawing from existing inventories rather than making new purchases. This has led to limited transactions and growing stockpiles at coke plants.

Supply

Production levels at coke plants remain stable but are increasingly outpacing demand. Inventories at plants are accumulating, particularly after six rounds of price reductions. Some plants have started scaling back operations to manage the oversupply.

Prices

Prices for met coke remain under pressure. Shanxi's met coke is trading at 1,410 RMB/ton, while Rizhao's is at 1,570 RMB/ton, both unchanged but facing downward pressure. Further price declines are expected if steel production and demand for raw materials do not improve post-holiday.