Coal production recovery is slow, and coking coal prices continue to exhibit a volatile yet strong trend.

The prices of coking coal in the domestic market continue to show a fluctuating yet strong trend. In terms of supply, there is still a gap in coking coal supply, especially due to structural issues with coal types that are hard to change. Under the backdrop of strict safety regulations in the country, the recovery of coking coal production is progressing very slowly. Today, the mainstream coking coal blending price from major mines in Changzhi rose by 50 yuan/ton, while the transaction price of high-sulfur primary coking coal in Luliang Xiaoyi increased by 62 yuan/ton, reaching 1736 yuan/ton. Online auction transactions are active, with a significant increase in premium margins, and offline market quotes are also rising in tandem. On the demand side, following the implementation of the third round of price reductions for coke, coking enterprises have further expanded their losses, and steel mills are also facing pressure from shrinking profits. Coking coal shows relatively strong performance supported by tight supply, but the suppressive effect from the demand side is also accumulating. Overall, it is expected that short-term coking coal prices will continue to maintain a fluctuating yet strong operation, but with limited upward potential.