Recently, the number of coal mines suspending operations has risen again in the Linfen and Lüliang regions, as some mines have completed their quarterly or annual production quotas.

Linfen and Lüliang are key production hubs for domestic coking coal. The suspension of operations due to quota fulfillment has directly led to a temporary contraction in coking coal supply. Strong restocking demand from downstream coke and steel enterprises is keeping spot prices firm—making them prone to rising rather than falling—while near-term futures contracts are trading strongly, driven by expectations of tightening supply and demand.

As the primary raw material for coke, coking coal's supply contraction and rising prices are driving up coke production costs. With coke producers strongly inclined to pass on these costs, there is upward pressure on coke spot prices, and futures prices are showing strength supported by cost-side factors.

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