SHANGHAI, Feb 10 (SMM) - The inventory of coke enterprises was 586,000 mt, an increase of 7,000 mt or 1.2% on the week. The coke inventory of steel mills was 2.977 million mt, an increase of 80,000 mt or 2.8% from the previous week. The coking coal inventory of coke enterprises was 3.721 million mt, a decrease of 70,000 mt or 1.8% from the previous week. Coke inventory at ports was 1.23 million mt, an increase of 80,000 mt or 7.0% from the previous week.
The output of coke enterprises was temporarily stable while the downstream demand weakened, hence the inventory of coke enterprises increased. This steel mills completed the restocking for coke as their production tended to stabilise. At present, coke enterprises had no plan to adjust production for the time being, and their inventory may increase slightly in light of weak demand. The sales of steel mills were poor, and they may reduce the procurement to force down the coke prices. As such, the increase in coke inventory of steel mills may slow down.
The coking coal output continued to increase this week and thus coke enterprises were still relatively cautious in procurement. Some coke enterprises even reduced their purchases to lower coking coal prices, but the prices fell slowly. With the declining purchase amount, the coking coal inventory of coke enterprises may decline.
At present, the supply and demand of coke is gradually balanced. The coke inventory of steel mills is sufficient while the sales are not good, hence they are less enthusiastic in production and the restocking demand weakens. The subsequent third round of coke price cuts may come to fruition, and traders are more wait-and-see. It is expected that the coke stocks in two ports may increase slightly next week.