Insufficient upward momentum or possibility of further price decline

On the 15th, the coking coal market in Liulin District of Shanxi Province was in weak operation. In the early stage, due to the limited production of national day environmental protection, the main coking coal with medium and low sulfur in Liulin area fell by different ranges. The maximum decline of main coking coal with low sulfur was up to 100 CNY/ton, and the main coking coal with medium sulfur was reduced by 10-50 CNY/ton. The main coking coal with high sulfur was relatively firm due to tight resources and limited production. It is reported that the inventory of individual large mines in Liulin is still at a high level, and the overall market delivery is average. In terms of ports, the coke inventory is relatively high, and the purchase demand is hard to release in a short period of time. In addition, the limited production situation in the later heating season is still uncertain. In a short period of time, the coking coal market in Liulin area is weak in operation, with insufficient upward momentum or potential downward trend.

In terms of production, according to the sample coal washing plants and coal mines in Liulin area investigated by our network, most of the coal mines have basically recovered from construction, some of them are still in a small production limit, and the overall construction has increased significantly compared with last week, basically recovered to the level of construction before the festival. Due to the shortage of raw coal resources, the construction of some coal mines is still at a low level. In terms of inventory, due to the early national day production limit, the start-up of downstream steel plants and coking plants has declined, the demand for coking coal procurement has been hindered, and the inventory of coal washing plants has been overstocked. This week, they are gradually shipping, but the downstream procurement enthusiasm is general, and the short-term sales pressure is still on. In the face of the impact of haze control in the coming heating season in November, most coal washing plants said that the coking coal market may continue to decline in the late October, and the market mentality is relatively negative. On the downstream side, some coke companies have not made progress in raising prices, and the coke market continues to operate steadily, with strong market wait-and-see sentiment. For the moment, there is no obvious change in the purchasing situation of the steel plant, most of which are on-demand purchasing. Some of them say that there may be price reduction expectation in the later period, so they need to continue to pay attention to the change of the steel market. In terms of ports, the quotation of traders is still weak, the recent enthusiasm for receiving goods is not high, and the shipping volume is relatively stable. The price of short-term coke remained stable, which still put downward pressure on the coking coal market. To sum up, the coking coal market in Liulin area of Shanxi Province is weak in short term, with insufficient upward momentum, negative market mentality as a whole, or the possibility of further price decline.