The Second Round Of Coke Price Hike Looms Large

SHANGHAI, Sep 26 (SMM) –

Coking coal:

Frequent safety checks have prevented most coal mines from returning to normal production levels, tightening coking coal supply. Additionally, recent coke price rise has boosted confidence in coking coal market, which drove traders to ramp up purchases, sustaining gains in coking coal price.

Coke:

In terms of coke supply, coking plants report smooth shipments, but some are planning to curtail production to tackle steadily climbing costs. On the demand side, high pig iron production at steel mills will ensure stable and strong demand for coke. With no clear output reduction plans by steel mills in sight, coke purchases are modest.

Market feedbacks suggest that most coking plants intend to hike quotes further. Given solid cost support, SMM sees a second round of coke price rise in the cards soon.