SMM daily comment on domestic coking coal and coke market (Aug 16)

SHANGHAI, Aug 17 (SMM) –

Coking coal market:

Most coal mines in Shanxi maintained normal production, and supply remained stable. A growing reluctance among downstream coking plants to some high-priced coal types was reported. In addition, recently mixed online auction prices of coking coal and more unsold online auctions explained for bearish market sentiment. Pressure of coking coal inventory of a few coal mines hiked. Offers for coking coal dipped.

Coke market:

Fundamentally, a mild increase in coke supply was felt impact of good profitability. Coking plants still had low inventory amid smooth delivery. The output of molten iron in steel mills remained high, bringing with it red-hot demand for coke each day. However, weighed down by poor profits and rising coke inventory at steel mills, steel mills purchased coke on a need-to basis.

On the whole, with rigid demand from steel mills and weakening cost support, market sentiment mainly stood stable, and the short-term coke market may roll over.