Coke Prices May Grow amid Rising Costs

SHANGHAI, Feb 27 (SMM) – Coke prices may grow this week. On the supply side, even with the declining profits, coking companies were still active in production under the expectations of price increase. Therefore, the supply of coke increased slightly. On the demand side, the sales of steel mills improved significantly and there was no maintenance plan, hence the demand for coke picked up. In terms of costs, the serious accident happened to a coal mine in Inner Mongolia may affect the supply of coking coal. Coupled with the strong downstream demand, the coke prices began to rise. To sum up, the supply and demand were more balanced while the costs of coking companies increased. As such, coke market may remain strong this week.