The coking coal market declined in early September and continued to rise in late September. According to the monitoring system of SunSirs, as of September 30th, the price index of SunSirs coking coal was 1,508.75 RMB/ton, an increase of 5.23% from the beginning of the month.

On the supply side: In the first half of the month, due to national policies, the release of production capacity in major production areas such as Shanxi and Inner Mongolia was restricted. In addition, security checks in Shanxi became stricter, coal mines suffered losses, and geological conditions in working faces deteriorated. Some high cost mines reduced production or stopped production for 1-2 days, affecting the supply of coking coal. In the second half of the month, the supply side tightened, inventory decreased, and coking coal prices rose twice. In the second half of the month.

On the downstream side: At the beginning of the month, demand from downstream steel mills was weak, and on the 8th and 15th, coke prices were raised and lowered twice in a row, leading to downward pressure on coking coal. In the second half of the month, downstream suppliers will concentrate on restocking before the holiday, and market sentiment will be high, causing coking coal prices to stabilize and rebound. It is expected that the market price of coking coal will remain stable in the later stage. ‌

According to analysts from SunSirs, the coking coal market experienced a decline followed by an increase in September. Part of the coal mines were shut down in the first ten days, resulting in a tight market supply and a decline in coking coal prices; In the second half of the month, with the concentrated replenishment of downstream inventory, the market price of coking coal has risen significantly. Downstream consumers are adopting a wait-and-see attitude towards high priced raw materials, which has limited the upward space for coking coal. It is expected to operate steadily and weakly next month, and more attention still needs to be paid to the supply and demand situation and the transaction of building materials.

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