Coking coal market:
With the downstream purchase of coking coal, the inventory of coking coal in mines has declined to varying degrees, and the quotation has begun to stabilise.
Coke market:
On the supply side, the production of coke enterprises is stable. The three rounds of price reduction pick up the downstream purchasing. Coke enterprises are actively shipping, so the coke inventory has remained low. However, some coke enterprises are forced to cut production due to the profits losses and the shipment pressure, so they have a strong willingness to resist coke price reduction.
On the demand side, steel mills with low profits get relatively reasonable coke inventory and purchase on rigid demand. While shipment of steel from steel mills is poor, some mills still wish to lower the coke prices.
On the whole, the inventory of coke in steel mills has increased, while steel shipments are poor, so steel mills mainly purchase coke on rigid demand. However, the stable coking coal prices support the costs of coke. It is expected that coke prices will be stable with some downward potential in the short term.
Disclaimer:
The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.
