China's coking coal prices remained firm across major producing regions on November 11, driven by localized supply restraints and on-demand restocking from coking plants. However, the bullish sentiment began to weaken as squeezed profits and the ongoing coke price tussle between coking plants and steelmakers dented mills' tolerance for higher raw material prices.

One steel company in Tangshan of Hebei reported a 30% reduction in production due to maintenance, with a likely continuation of this slowdown through the end of the year, citing high cost pressure from both coke and coking coal prices.

The abundant coke and feed coal stocks at mills also lessened the possibility of sustained price growth, although most admitted the already-launched fourth round of coke price hike is likely to materialize late this week.

"Most steel mills right now have enough stockpiles for consumption, except a few in southern China lacked stocks, while others were mainly supplied with term contracted shipments," said one trader source in Shanxi.

However, the situation in Wuhai of Inner Mongolia differed, given the limited availability of spot supplies, caused by strict safety and environmental inspection.

Main coking coal mines in Wuhai and Qipanjing adjusted up coal prices by 100 yuan/t on November 10. 1/3 coking coal (S 1%, A 13%) prices rose to 1,300 yuan/t, ex-washplant with VAT. Mid-sulfur primary coking coal (S 1.8%, A 11%) climbed to 1,320 yuan/t, while high-sulfur 1/3 coking coal (S 2.5%, A 10.5%) gained to 1,250 yuan/t.

Spot supplies in Shandong also declined clearly since major coal enterprises in the province were ordered t to increase stockpiles by the provincial government. The target is to raise total inventory to 3.3 million tonnes by November 15, with stocks needing to be maintained until approval from the provincial government before they can be sold (typically after the heating season).

Localized washed gas coal (S 0.5%, GRI 75) climbed 20 yuan/t to 1,010-1,020 yuan/t, ex-washplant with VAT, sending cumulative increase since October to 110 yuan/t.

The supply situation was still the key factor driving market conditions. Another Shanxi-based coal miner mentioned that their coal stockpile is sufficient for about 10 more days, and prices have recently risen by 30 yuan/t.

The Mongolian imported coal market also faced certain weakening signs, as the futures market turned weaker, buyers became resistant to high-priced cargoes, resulting in subdued transactions.

On November 11, Mongolian 5# raw coal trading prices fell slightly to about 1,150-1,170 yuan/t, ex-stock Ganqimaodu with VAT.

Overall, while there were signs of softening in the market, the fundamental factors like tight supply and strong demand continued to support the market.

China launched its 2025 nationwide work safety inspections, led by the Work Safety Committee of the State Council, and deployed 22 inspection teams across all 31 provinces.

As of November 10, ten inspection teams have already begun their work in some provinces, including Shanxi. Market insiders noted the degree of impact on overall production still needs time to see.