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Affected by market instability, domestic thermal coal prices have remained high since the end of the two holidays, with increasing signs of a slowdown in price increases at various stages of the supply chain; the price gap between futures and spot prices has now exceeded 100 yuan per ton. On Wednesday, the 01 contract remained significantly at a discount; its latest closing price was 609.6 yuan per ton. The market continued to show a downward trend, with policy risks weighing on futures prices. It is recommended to adopt a cautious approach and maintain a low position size. Today, the inventory at Qinhuangdao Port exceeded 7 million tons, and the total inventory across five ports continued to rise; high levels of inventory in the market are preventing coal prices from rising any further. On October 11, the total coal inventory at southern power plants was 10.03 million tons, with a daily consumption of nearly 700,000 tons, reducing the available supply to 14 days. With daily consumption remaining high and fluctuating, inventories risk exceeding 10 million tons. Policies aimed at stabilizing coal prices, coupled with high inventory levels, put pressure on further increases in coal prices in the short term. However, the demand for stockpiling during the heating season is set to increase, putting extra pressure on transportation; thus, there is still room for price increases in the market in November, according to the China Phosphorus Coal Industry Network.