SHANGHAI, Aug 3 (SMM) - Coking coal prices fell amid output cuts by coking plants and steel mills. However, as some steel mills are expected to resume production this month, coal prices may stabilise.
Thanks to sharp drop in coking coal prices, the losses of coking plants did not expand further. Some traders stocked up coke, allowing coke shipments to improve significantly. Some coking plants reported a decline in their inventory and became bullish on coke prices.
On the demand side, some steel mills have begun to resume production one after another, thus the demand for coke may improve.
In view of rising steel prices, production resumption of some steel mills, as well as lower inventory of some coking plants, it is expected that the short-term coke prices may rebound.