China's coking coal market retained a firm footing, supported by regional supply constraints, existing pre-sale orders, low inventories, and potential winter demand, although growing caution emerged among major buyers after weeks of price gains slightly sapped their procurement enthusiasm.

While the pace of increases began to moderate and market sentiment showed signs of easing, coking coal prices remained broadly elevated. Localized production disruptions due to safety concerns or longwall moves sustained current price levels in the absence of significant new supply from key producing regions.

Safety and environmental inspections will remain stringent toward the end of the year nationwide, and domestic coal prices will remain supported and fluctuate within a narrow range, citing a low possibility for a substantial output ramp-up, according to China Coal Energy at its third-quarter results briefing.

"Firm coking coal prices are underpinned by strict environmental checks and the underutilization of regional capacity throughout the year," said a Wuhai-based miner source in Inner Mongolia.

Another Shanxi-based source stated that some mines reasonably scaled back operations after reaching their annual output goals.

Meanwhile, downstream purchases, though becoming more measured as buyers were increasingly reluctant to chase prices higher in the face of elevated costs and thin margins, remained steady to meet their essential needs.

"With normal operation and no plans to cut production, we're continuing to buy feed coal to maintain stocks available for nearly 10 days of consumption," said a Shanxi-based coke producer source.

"Pre-sale orders have stretched to early next month, yet we received fewer new orders in recent days amid rising prudent sentiment," one miner source based in Shanxi stated.

In Shandong, local miners reported minimal stockpiles thanks to smooth dispatch and lifted prices across all coking coal grades by 20 yuan/t on October 28, Sxcoal learned. Washed gas coal (S 0.5%, GRI 75) rose 1,010–1,020 yuan/t, bringing cumulative gains this month to roughly 60 yuan/t. Major mines in the province kept prices stable, but hinted at possible upward adjustments in the near term.

"Buyers keep stable receivings of coking coal at market prices, though there is a growing intention of shunning high-priced cargoes," noted a source within a Shaanxi-based washing plant.

Offer prices of Huangling gas coal (S 0.5%, A 8%, GRI 65) in Yan'an, Shaanxi, were increased by 30 yuan/t to 1,010 yuan/t on a free-on-rail basis, effective October 30, Sxcoal learned.

Online coal transactions also exhibited more auctions concluded at higher settlements, with some hammer prices even surging over 100 yuan/t compared to the previous trading sessions this week.

A deal of 30,000 tonnes of fat coal (S 3.7%, A 11%, GRI 92) in Linfen of Shanxi was fully traded at 1,210-1,215 yuan/t on October 28, up 125 yuan/t from the week-ago level.

In addition, several coke makers started to initiate a third round of coke price hikes, given high cost pressure and resilient steel mill demand. This, in turn, is likely to provide continued strength to the coking coal market.