SHANGHAI, Jan 3 (SMM) - Coking coal market: The downstream enterprises were less willing to purchase and the market transactions were not active. Meanwhile, as the impact of the pandemic weakened, and the operating rates of coal mines increased. But the prices offered by mines remained stable due to the low inventory.
Coke market: On the supply side, the first round of coke price cut was fully implemented and the profits of coke companies narrowed sharply. As such, the coke companies were less active in production. Coupled with the weakening sales, the inventory of some coke companies accumulated. Therefore, the supply gradually loosened.
On the demand side, the steel mills significantly stepped up their restocking pace. Some steel mills controlled the pace of coke arrivals and lowered the purchasing prices of coke for the first time on January 1 by 100-110 yuan/mt.
On the whole, the coke inventory of some steel mills has increased to a reasonable level, hence they began to control the pace of coke arrivals, which has slowed down the accumulation of coke inventory in some coke companies. It is expected that the coke market may stabilise in the short term.