SunSirs: Supply Tightness Remains Unresolved, China Coking Coal Market Shows Strong Trend

The tight supply situation remained unchanged this week, with the domestic coking coal market showing a stable to strong trend. According to data from the SunSirs monitoring system, as of November 13th, the SunSirs coking coal price index was 1,651.25 RMB/ton, up 4.43% from the beginning of the month.

On the supply side: This week, affected by safety supervision and environmental protection measures, some coal mines in Shanxi Province suspended production, resulting in a decline in output. Open-pit coal mines in Wuhai, Inner Mongolia, and other areas suspended production due to issues related to the management of mining subsidence areas, significantly reducing the number of coal mines in the region. Overall, the domestic supply situation remains tight. Low inventory levels further exacerbated the tight supply situation, thus providing favorable support for higher coking coal prices.

On the downstream side: Downstream coking enterprises are experiencing increased losses, and the entire industry plans to reduce production by 30% to cope with cost pressures. Pig iron production remains high. Coking plants and steel mills are actively replenishing their winter stockpiles, which will further support the demand for coking coal. Overall, downstream demand is showing strong purchasing activity, and the coking coal market is expected to remain robust in the short term.

According to SunSirs analysts, domestic coking coal spot inventory is tight, downstream market transactions are favorable, and given the continued tight supply and demand situation, the coking coal market is expected to trend upwards in the near future. Further attention should be paid to the supply and demand situation and the transaction volume of construction materials.

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