The market price of coking coal continued to decline in May. According to the monitoring system of SunSirs, as of May 26th, the price index of SunSirs coking coal was 1,321 RMB/ton, a decrease of -7.36% from the beginning of the month.

On the supply side: In May, the supply of coking coal was relatively loose, with sufficient inventory, mainly focused on clearing inventory. Some coal mines have affected production due to excessive inventory. Overall, there is an oversupply in the coking coal market, and high inventory is difficult to consume in a short period of time, resulting in a continuous decline in coal prices.

Downstream: After the May Day holiday, the continuous increase in iron production did not drive up the price of coking coal. As iron prices fell, the coking coal market further declined. The willingness of coke enterprises to replenish inventory is weak, and they mainly purchase on demand, resulting in a cold market transaction atmosphere. Overall, downstream demand support is insufficient, and the price trend of coking coal market is declining. More attention should be paid to downstream iron production and building material transactions.

According to SunSirs analysts, the current market for coking coal is characterized by strong supply and weak demand, with insufficient support from downstream demand and a focus on essential procurement. Overall, the coking coal market is weak and declining, and it is expected that the weak pattern may continue next month. More attention still needs to be paid to the supply and demand situation and the transaction of building materials.

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