Coke Prices to Remain Stable Temporarily

SHANGHAI, Feb 1 (SMM) - Coking coal market: More coal mines have resumed the operation, pushing up the output of coking coal. But downstream buyers were cautious about purchasing. As a result, the shipment of some coal varieties stalled, and the quotations varied.

Coke market: On the supply side, coking companies were not passionate about production due to low profitability, resulting in accumulating coke stocks. Thankfully, more traders made inquiries and cargo pick-ups also rose. The growing shipments improved the supply and demand structure. On the demand side, steel mills were increasingly active in purchasing coke as they ramped up the pig iron output.

On the whole, some steel mills with low inventory still had restocking demand for coke. With the market sentiment boosted by positive macro outlook, some traders have begun to pick up goods. It is expected that coke prices will remain stable in the short term.