The QHD price increased to RMB1500/t in September as the market tightened due to hot weather, rainstorms, the Covid-19 pandemic and weak hydrogeneration, among other factors. China reported 370 Mt of coal output in August. Again, the daily output dropped below 12 Mt. We expect low production to continue in September and October as safety is the crucial issue limiting supply. In the meantime, maintenance activities on the Daqin rail line will worsen coal inventories at ports. As such, the QHD price will continue to go up. The steady resumption of steel mills brought extra steel output but became a burden on steel destocking and harmed the price. The steel mills and coking plants’ poor margin positions generated a new wave of production suspensions in October, similar to July. But we don’t expect the coking coal price to collapse drastically. Why is this?