Publicado: Dec 15, 2023 16:52
SMM Coking Coal Market Weekly Report: Core Views: On the supply side, this week saw a cold wave in the north, with heavy snow blocking roads and causing transportation issues for coking enterprises, leading to a significant accumulation of coking coal inventory. However, downstream demand remains steady and coking plants have seen noticeable improvement in profitability, leading to a slight increase in production enthusiasm. On the demand side, steel mills also faced transportation problems this week, with poor arrival of raw materials and high daily consumption of coking coal. As a result, coking coal inventory in steel mills has decreased and there is a demand for replenishment of inventory. On the cost side, a coal mine accident in Lvliang this week has led to a tightening in the supply of coking coal, though the price of coking coal is already at a high point and downstream acceptance is low, leading most coking steel enterprises to purchase on demand. The potential for further price increases in coking coal is limited. Overall, there is a short-term mismatch in coking coal supply and demand, with high enthusiasm from downstream steel mills to replenish their coking coal inventory and strong coking cost. It is expected that the fourth round of coking coal price increases will be implemented, and the coking coal market is likely to run steadily and slightly stronger next week.

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