SHANGHAI, Aug 23 (SMM) –
Coking coal: Coal sales were smooth as downstream coking companies and steel mills restocked on demand, resulting in low coking coal inventory. However, more market players turned wait-and-see as steel demand remained sluggish. Coupled with falling auction prices of some coal varieties online, coal prices have been stable as a whole, with prices of a few mainstream coking coal and lean coal on the rise.
Coke: The shipment of coking companies in Ningxia and Inner Mongolia has slow down, and the in-plant inventory accumulated, which forced some to lower the prices. On the whole, coking companies were active in making shipment, and the inventory was also low.
On the demand side, there was still rigid demand for coke, and the coke inventory was also at a mid to low level. However, speculation demand has contracted significantly recently, and some steel mills were also quite cautious.
On the whole, coke has gained support from the cost side, while the traders and coking companies are active in selling. However, the steel mills are actious and purchase only on demand, resulting in rising coke inventory held by coking companies. Coke prices are expected to stabilise amid the tug-of-war between the coking companies and steel mills.
