SunSirs: China Coking Coal Market Continued to Decline in January

The coking coal market continued to decline in January, with a drop of around 50-100 RMB/ton, indicating an overall weak operation. According to the monitoring system of SunSirs, as of January 16th, the price index of SunSirs's coking coal was 1,562.25 RMB/ton, a decrease of -2.95% from the beginning of the month.

On the supply side: Last month, due to the approaching end of the year, some coal mines gradually completed their tasks and experienced production stoppages. Resulting in a decrease in the supply of coking coal. After the New Year's Day this month, the coal mine operation rate has increased. As of January 16th, the coal mine operation rate was about 88.68%, an increase of 9.8 percentage points compared to last week. The market supply is slightly loose.

Downstream: Downstream demand continues to be weak, with some steel mills facing maintenance. In addition, the downturn in industries such as metallurgy has led to a gradual decrease in demand for coke and other coking coal derivatives. The market is filled with pessimistic sentiment, and the profit margin of coking steel enterprises is slim. They adopt a low inventory strategy in multiple dimensions, purchase cautiously, and purchase for essential needs.

According to analysts from SunSirs, although the supply side of coking coal has rebounded on a month on month basis, downstream demand continues to be weak, and market pessimism is pervasive. Overall, in the context of supply-demand competition, the price rebound is weak. It is expected that the market price of coking coal will gradually stabilize in the near future. We still need to pay attention to the supply and demand situation and the transaction of building materials in the future.

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