SMM Daily Price Review and Forecast on Coking Coal and Coke Markets

SHANGHAI, August 4, (SMM)-

Coking coal market:

Affected by heavy rainfall in the north, some coal mines reduced production, further tightening supply of coking coal. Downstream buyers were reluctant to accept some high-priced coal types, but online auctions were completed recently, and coal companies had no inventory pressure for the time being. Coking coal market will swing on a stable-to-good note on the near-term horizon.

Coke market:

Fundamentally, profit recovery after the fourth round of coke price increases, coupled with low inventory reinforced coking plants’ incentive to produce. With restart of some Tangshan-based BF steel mills, replenishing demand of steel mills remained. Logistic disruptions subject to storming weather left steel mills in the north with limited coke arrivals, and so their coke inventory kept shrinking.

On the whole, robust demand from steel mills was reported, while in-plant coke inventory of coking plants stood low. Coke market saw tight supply-demand fundamentals. In addition, the fourth round of coke price hikes occurred. Coke market may firm up in a short term.