Coke Prices to Remain Largely Stable

SHANGHAI, Feb 10 (SMM) - Coking coal market: The output of coal mines increased, while the downstream were discouraged by low profits and mainly purchased coking coal as needed. As a result, the coking coal inventories of mines accumulated slightly. Additionally, more online auction of coal ended with no buyers, and quotations of some coal varieties were lowered.

Coke market: On the supply side, the prices of some coal varieties were cut, but some coking enterprises were still losing money and maintained their operating rates at previous levels. The shipments of coking enterprises were slow as downstream buyers started to stand on the sidelines.

On the demand side, the coke inventory of steel mills settled at a reasonable level, while the end demand was poor. In this context, the steel mills began to control the purchase rhythm.

On the whole, the coke inventory of steel mills has increased, which dampens their purchasing enthusiasm for coke and affected coke shipments. It is expected that coke prices may remain largely stable in the short term.