Coke Market Likely to Stabilise as Downstream Demand Recovers

SHANGHAI, Feb 23 (SMM) - On February 22, the transaction prices of first-grade metallurgical CQD in Luliang, Shanxi were 2,890 yuan/mt (ex-factory), flat from the previous day.

Downstream enterprises purchased as needed and demand from traders was not released. As such, some coal mines had a slight inventory pressure. But demand for some coal types was strong and mines quoted firmly.

On the supply side, coke enterprises have resumed to normal level and market sentiment gradually improved. Some traders were willing to pick up goods, and steel mills were more active in procurement. As such, coke enterprises shipped smoothly while some coke enterprises were reluctant to sell. On the demand side, terminal demand has picked up significantly and steel prices have rebounded slightly. Amid the recovering profits, operating rates of blast furnaces continued to grow, and coke demand has improved. On the whole, the profits of steel mills has improved, the operating rates continued to grow. As such, the demand for coke increased, and the short-term coke market may temporarily stabilise.