SHANGHAI, May 17 (SMM) - Supply: Some steel mills in Shandong, Shanxi and Hebei have initiated the third around of coke price decline by 200 yuan/mt. If it goes smoothly, the prices of grade I met coke and quasi-grade I met coke (dry quenching) will be 3,860 yuan/mt and 3,630 yuan/mt respectively, and those of grade I met coke and quasi-grade I met coke will be 3,300 yuan/mt and 3,150 yuan/mt respectively, all of which are on an ex-factory, cash basis. Coking plants maintained normal production, but the shipments were not very smooth amid sluggish downstream demand, which resulted in rising in-plant coke inventory.
Demand: Steel mills’ coke inventory has been relatively high, hence they controlled the purchases of coke.
Raw materials: Coal prices may correct amid falling demand from traders and downstream players, as well as dropping on-line auction prices. Prices of some coal varieties have fallen under pressure.
Generally speaking, coking plants’ coke inventory is rising on improving coke supplies. And steel mills also have high coke inventory, hence are forcing down coke prices. Couple with constantly declining coking coal prices, coke prices are likely to fall recently.
