Last week, the domestic coking coal market experienced a volatile downward trend. On December 18th, the price of coking coal in the Anze market of Linfen increased by 100 RMB/ton, and the ex factory cash price of low sulfur main coke clean coal A9, S0.5, V20, and G85, including tax, was 1,600 RMB/ton. The recent price increase has provided a certain boost to the sentiment of the coking coal market. However, the weakening of downstream demand has led to a consolidation of the coking coal market. According to the monitoring system of SunSirs, as of December 19th, the price index of SunSirs coking coal was 1,456.25 RMB/ton, a decrease of -6.58% from the beginning of the month.

On the supply side, some coal mines that were previously affected by safety supervision and environmental protection have basically returned to normal. However, as the end of the month approaches, the coal mine is also in the peak period of year-end maintenance, and it is expected that production will not continue to increase in the short term. It is expected that coking coal consolidation will be the main operation in the near future.

Downstream: Demand from downstream steel mills has weakened, and some steel mills have entered a maintenance period. The main trend is the decline in coke prices, with cautious procurement and a focus on essential needs. The production of molten iron tends to decline, leading to a contraction in terminal demand. It is expected that the coking coal market will mainly consolidate in the short term.

According to analysts from Shengyishe Coking Coal, the domestic coking coal supply is facing a peak period of year-end maintenance, making it difficult for the supply to continue increasing. Downstream market demand is weakening and support is insufficient. It is expected that the coking coal market will consolidate in the short term, and more attention still needs to be paid to the supply and demand situation and building materials transactions.

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