Coal Mines Maintain Normal Production while Downstream Enterprises Purchase as Needed

SHANGHAI, Feb 17 (SMM) - On February 16, the transaction prices of first-grade metallurgical CQD in Luliang, Shanxi were 2,890 yuan/mt (ex-factory), flat from the previous day.

Coal mines maintained normal production while downstream purchased as needed and traders were cautious. Coupled with declining online auction prices, market sentiment weakened and prices of some coal types continued to decline.

On the supply side, the supply of coke increased amid falling costs and improving profits. However, steel mills were less willing to purchase, leading to increasing inventory of some coke companies. On the demand side, steel mills with sufficient coke inventory controlled the arrivals of coke and traders were still wait-and-see. However, with the improving sales of steel products, steel mills were less sensitive towards high coke prices.