In November, the domestic coking coal market prices first rose and then fell. According to the monitoring system of SunSirs, as of November 28th, the price index of SunSirs's coking coal was 1,558.75 RMB/ton, a decrease of -1.42% from the beginning of the month.

On the supply side: In the first half of the month, due to the impact of safety supervision and environmental protection, some coal mines in Shanxi were shut down, resulting in a decline in production. The open-pit coal mines in Wuhai and other areas of Inner Mongolia have been shut down due to issues with goaf management, resulting in a significant reduction in coal mines in the region. Overall, in the first half of the month, the domestic supply situation was tight, inventory was low, and the market price of coking coal continued to rise. In the second half of the month, coal mine production has recovered to some extent, and the market supply is gradually increasing, causing the price of coking coal to weaken.

Downstream: At the beginning of the month, there was good demand for coking coal downstream, and the purchasing sentiment was relatively positive. In addition, the third round of increase in coke prices has further supported the sentiment of the coking coal market. The production of molten iron also provides strong support for the demand for coking coal. Overall, most coal prices maintained an upward trend in the first half of the month. However, in the second half of the month, the demand for raw coking coal from coke enterprises and steel mills has weakened, and the market trading atmosphere is cold. The demand side lacks support for the coking coal market price, and the coking coal market price has shown a downward trend.

According to analysts from Shengyishe Coking Coal, currently the supply side is relatively loose with sufficient inventory. However, downstream demand is weak, and there is a need to purchase urgently. Therefore, caution should be exercised and the focus should be on consuming inventory, resulting in insufficient new order volume. It is expected that the market price of coking coal will continue to show a weak trend in the short term, and more attention still needs to be paid to the supply and demand situation and the transaction of building materials.

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