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The heating season is approaching soon. Although demand for thermal coal is declining on a month-on-month basis due to the impact of other energy sources, given the current supply shortages, there is a high possibility of a seasonal increase in demand, though the extent of that increase is not expected to be significant. According to the China Phosphorus Coal Industry Network, both thermal coal and coking coal prices dropped in October. This was mainly because coal prices had reached their ceiling, and at the same time, demand for coal was at a low level due to the off-season period. However, coal company inventories are currently low and cannot be changed; resources are tight in certain areas, especially in the northern regions. On the eve of maintenance work on the Daqin Railway line and winter coal stockpiling, power plants are eager to replenish their inventories, and the inventories of the six major coastal power plants dropped back to three-digit levels by mid-October. November and December mark the peak seasons for coal storage and consumption in winter; if temperatures remain low this winter, climate factors will once again contribute to an increased demand for coal. As a result, coal consumption this winter was lower than in previous years; in particular, steel production declined significantly, and due to environmental sanctions, sporadic consumption also dropped greatly. However, taking all these factors into account, due to supply shortages and insufficient transportation capacity, it is also very difficult to reduce coal prices.