The Second Round Of Coke Price Hike Looms Large

Published: Sep 26, 2023 09:21

Source: SMM

Save

Frequent safety checks have prevented most coal mines from returning to normal production levels, tightening coking coal supply.

SHANGHAI, Sep 26 (SMM) –

Coking coal:

Frequent safety checks have prevented most coal mines from returning to normal production levels, tightening coking coal supply. Additionally, recent coke price rise has boosted confidence in coking coal market, which drove traders to ramp up purchases, sustaining gains in coking coal price.

Coke:

In terms of coke supply, coking plants report smooth shipments, but some are planning to curtail production to tackle steadily climbing costs. On the demand side, high pig iron production at steel mills will ensure stable and strong demand for coke. With no clear output reduction plans by steel mills in sight, coke purchases are modest.

Market feedbacks suggest that most coking plants intend to hike quotes further. Given solid cost support, SMM sees a second round of coke price rise in the cards soon.

Market forecast Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

9 hours ago

Coking Coal and Coke Futures Hit Daily Limit, Coal and Ferrosilicon Cost Support Drives Magnesium Prices Higher — How Will Magnesium Perform Going Forward? [SMM Commentary]

9 hours ago

11 hours ago

[SMM Steel] India’s RINL Launches Export Tender for 60,000 mt Steel Billets

[SMM Steel] Indian state-owned steelmaker RINL issued a global export tender for 60,000 mt of prime continuous cast steel billets on an FOB stowed basis, with shipment required by July 20, 2026. The tender covers 3SP and 4SP billets in 150x150 mm and 200x200 mm sizes. Buyers must submit bids by May 26, with offers valid until May 30. The minimum bidding volume is 30,000 mt, with additional quantities allowed in 5,000 mt multiples. Payments will be conducted through irrevocable sight letter of credit terms.

11 hours ago

[SMM Steel] Feralpi Stahl Expands Rebar Capacity at Germany’s Riesa Plant

[SMM Steel] Feralpi Stahl, part of Italy’s Feralpi Group, is increasing annual steel capacity at its Riesa plant in Germany from 1 million mt to 1.3 million mt through a new Danieli rolling mill commissioned last May. The new facility currently operates on a two-shift basis and is expected to receive final equipment certification this summer. The mill targets annual rebar-in-coil output of 400,000-450,000 mt, with plans to shift to three-shift operations by 2027 depending on market conditions. The company also said it will continue investing in scrap processing operations.

11 hours ago