SMM Coking Coal and Coke Market Comment & Forecast

SHANGHAI, May 6 (SMM) – Coking coal: Coal mines maintained high operating rates and their output continued to increase. However, demand from coking plants and traders was poor, pushing coking coal inventories to high levels, which will weigh on coking coal prices.

Coke: Even after the sixth round of coke price cuts, coking plants remained in profit territory as their costs also fell. Most coking plants maintained stable production, but shipments were poor. Some coking plants lowered output due to excessive inventory. Steel prices kept falling amid poor end demand. More blast furnaces were put under maintenance, hurting coke demand. To sum up, falling demand and costs will put coke prices at downside risk.