China's coking coal market continued its upward trajectory across major producing regions, driven by persistent supply tightness and firm buying interest from downstream users. The widespread bullish sentiment also boosted online transactions, resulting in higher settlements.

In Qipanjing of Inner Mongolia, one large miner started an online auction of high-ash fat coal (S 0.8%, A 15%) at 1,000 yuan/t on October 22 and closed the deal at 1,070 yuan/t, up 10 yuan/t from October 16. The miner also concluded deals of high-sulfur fat coal (S 2.5%, A 12%) and low-sulfur fat coal (S 0.8%, A 12%) at 1,230 yuan/t and 1,250 yuan/t, respectively, rising 50 yuan/t and 20 yuan/t from the previous trades.

Roughly 70% of open-cut mines in Wuhai of Inner Mongolia have been long halted since a 2023 mining accident for resource consolidation and mining rectification. Last week saw three mining projects in goaf remediation and several open-pit mines pause production due to stricter environmental inspections, further limiting the region's raw coal availability.

Though sales of those projects, accounting for 30% of the region's raw coal supply, resumed over the weekend, production is yet to recover, with no clear restarting timeline provided.

Meanwhile, in another coal hub of Shanxi, auction prices further reinforced the prevailing bullish tone, with local miners reporting ongoing supply disruptions and active purchases from coking plants, Sxcoal learned.

Gujiao low-sulfur primary coking coal (S 0.45%, A 9.5%, GRI 85) in Taiyuan settled at 1,575 yuan/t on October 21, surging 110 yuan/t from the end of September, while Lishi low-sulfur primary coking coal (S 0.6%, A 11%, GRI 88) in Luliang traded at 1,570-1,575 yuan/t on the same day, up 103 yuan/t in total this month.

On October 22, a Luliang-based miner sold 35,000 tonnes of high-sulfur primary coking coal (S 3.0%, A 10.5%, GRI 85) at 1,195-1,220 yuan/t, 37.5 yuan/t higher than the average hammer price on October 19.

Another deal of gas coal (S 0.6%, A 36%, GRI 65) in Yan'an of Shaaxi was closed 53 yuan/t higher than the last session at 605-621 yuan/t.

In Shaanxi, a miner source noted that daily production dropped due to longwall relocations, and further reductions are expected. "We're planning to lift coking coal prices on the back of brisk sales."

Coking plants and trading firms increased their procurement activities, buoyed by restocking needs and expectations of continued price strength. Multiple miners confirmed smooth dispatches, with some pre-sale orders stretching up to the next two weeks, leaving lower on-site inventory.

In Changzhi of Shanxi, one mainstream miner raised truck-delivered prices of blending coal by 40-60 yuan/t, effective October 21, with washed meager lean coal (S 0.4%, GRI 10-15) up 40 yuan/t to 1,030-1,080 yuan/t. The new price for washed lean coal (S 0.4%, GRI 30) rose 60 yuan/t to 1,250 yuan/t.

On October 22, the CCI index for Shanxi low-sulfur primary coking coal was steady day on day at 1,557 yuan/t, ex-washplant with VAT. CCI indexes for mid- and high-sulfur primary coking coal stood stable at 1,340 yuan/t and 1,323 yuan/t, respectively, up 40 yuan/t and 39 yuan/t.

On the import front, a pullback in domestic futures contracts weakened trading sentiment at China's Ganqimaodu border crossing. Some Mongolian 5# raw coking coal cargoes traded slightly lower at 1,100 yuan/t, ex-stock with VAT.

At northern China ports, a deal of some 75,000 tonnes of Russian mid-vol PCI coal was heard transacted at $129.5/t CFR China without VAT, loading end-December.