Supply of Coke Market is Loose

SHANGHAI, Apr 6 (SMM) - The prices of some coal types has been lowered, but the shipments have not improved significantly. At the same time, downstream enterprises and traders have suspended purchases. As such, inventory of some coal types increased further, and the quotations were lowered again by 100-120 yuan/mt. Coke market: On the supply side, even with the first round of price cuts, the profits still encouraged most coking companies to produce actively, hence the coke supply remained stable, and some coke companies are under increased shipping pressure. On the demand side, the steel market fluctuated downward, and thus the poor profits made steel mills to control the arrivals of goods. On the whole, the prices of coking coal continued to drop, hence the cost support of coke weakened. Coupled with the control of arrivals of steel mills, the supply of coke was loose. It is expected that the short-term coke prices may decline.