SMM daily review and forecast for coking coal and coke market (Aug 7)

SHANGHAI, Aug 8 (SMM) –

Coking coal market:

At present, higher-than-expected prices of some coal types lessened demand from some traders, coal washing plants and downstream enterprises. However, safety inspections and working face replacement in some areas in Shanxi, coupled with logistic disruptions triggered by recent heavy rainfall will keep offers for coking coal strong on the near-term horizon.

Coke market:

In terms of fundamentals, coking plants emerged from loss in profits, and had greater incentive to produce when coking coal price ceased hiking. On the downstream side, taking cues from pig iron output inching higher, demand from steel mills for coke remained. In addition, logistical bottlenecks dented arrivals at steel mills. On the whole, with bullish cock spot price, coke market is unlikely to swing in weakness, but the upward momentum will be also insufficient, and the fifth round of price increases is unlikely to take place.