Steel Mills Controlled the Arrivals of Coke in the Spot Market

SHANGHAI, Sept 1 (SMM) - Coking coal market: The coking coal inventory of coal mines stood at a low level, but downstream enterprises and traders were cautious about procurement, exerting pressure on coal mines in terms of shipments. In addition, the online auction transactions dropped recently, prompting mines to lower the quotations of some coal types.

Coke market: On the supply side, coking enterprises maintained stable operating rates, but slowed down in making shipments. As a result, the coke inventory have accumulated, and some coking enterprises sold at lower prices. On the demand side, the steel futures prices declined along with a weakening market, which, couple with sluggish terminal demand, compressed the profits of steel mills. Therefore, steel mills were cautious about purchasing coke, and a few steel mills intended to reduce the purchase price. On the whole, the futures prices fell sharply, and the market sentiment turned pessimistic. The steel mills controlled the arrivals of coke in the spot market, and the inventory of coking enterprises kept rising, causing some coking enterprises to lower the prices for shipments. It is expected that the coke prices will stabilise or fall slightly in the short term.