The Chinese coking coal market has shifted from strong demand and rising prices in early September to the current cooling of sentiment and a correction in prices. In mid-September, regulatory measures began to influence supply expectations. Market concerns regarding shortages eased somewhat following the publication of a joint statement by three regulators (the National Development and Reform Commission, the National Energy Administration and the National Mine Safety Administration). The document authorises mines that have exhausted their annual quotas to continue limited production within specified limits, provided they pass safety inspections and obtain approval from the provincial authorities.

At the start of this week, coking coal prices in China continued to fall. The market currently lacks solid support from the demand side. Despite the approaching long autumn holidays, buyers are not particularly active in replenishing their stocks of this raw material and are therefore adopting a wait-and-see approach regarding future prospects. Prices for coking coal and coke in the country are likely to remain stable in the near future, albeit at elevated levels.

At the same time, prices for Australian seaborne coking coal also remained high in late August and early September, against a backdrop of tight supply in China. However, market sentiment subsequently shifted, and traders began to exercise greater caution due to fluctuations in the prices of this commodity.

Last week, seacoal prices rose slightly once again — despite China’s new policy aimed at increasing production, the recovery of domestic supplies is unlikely to be swift.

It should be noted that global prices for coking coal at the end of August showed a significant rise due to increased demand in China against a backdrop of supply shortages.

Courtesy : https://gmk.center/en