SMM daily comment on domestic coking coal and coke market (Aug 21)

SHANGHAI, Aug 21 (SMM) –

Coking coal market:

The overstock of some coal mines already affected the production. Growing pressure to sell led to expectations for price cuts. Online auctions for most coal types failed, causing the trading sentiment to be muted. Fewer new orders were signed, and the prices of various coal types fell.

Coke market:

The low stocks of coking coal at coke enterprises have eased and the profit of coke plants is acceptable. The coke stocks remained at a low level. The output of molten iron at steel mills is high, supporting the rigid demand for coke. However, steel prices have weakened and profits shrunk, so the buyers mainly purchased coke on demand.

On the whole, as the market sentiment cooled and news of the coke price cut in some areas spread, the coke market may drop a little on the near-term horizon.