Prices were roughly stable at production bases, though some miners adjusted prices based on changes in coal quality and sales.
Prices were facing downside risk in Hebei as cement plants suspended operation amid environmental protection regulation and power plants pressed down prices amid high stocks.
Offer prices at northern ports for 5,500 Kcal/kg NAR coal stood steady at around 590 yuan/t, FOB with VAT, due to weakness in both supply and demand. But the price may drop after supply returns to normal level.
Offer price for Indonesian 3,800 Kcal/kg NAR coal stood at around $44/t FOB, while that for Australian 5,500 Kcal/kg NAR coal was at $65/t FOB.
Most coking coal mines have resumed production in China. Mines saw coking coal stocks rise slightly in Shanxi, and received continual price cut request from downstream customers.
The environment department would go to Linfen of Shanxi to launch checks, so coke and steel firms may expand production cuts, which would dent demand for clean coking coal. The premium primary coking coal with 0.4% sulfur was offered at 1,480 yuan/t ex-washplant with VAT in Linfen.
Coke prices have seen a total drop of 150-200 yuan/t since early this month. In Tangshan of Hebei, coke prices were in disorder, and both supply and demand were weak. Major steel mills still had high coke inventories, so they were inactive in buying.
Low prices may continue in China's coke sector, as the cost may lose support amid sliding coking coal prices.
(Writing by Jessie Jia Editing by Harry Huo)
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