Cost Support for Coke Prices Weakened

SHANGHAI, Jan 4 (SMM) -

Coking coal market: The impact of the pandemic has gradually weakened, and the operating rates of coal mines increased. However, the downstream enterprises were less active in procurement. Coupled with the increasing amount of failed online auctions, the transaction prices of certain types of coal declined. But the market supply remained tight as some coal mines plans to take holiday amid the approaching Chinese New Year. As such, the prices offered by coal mines were mostly stable.

Coke market: On the supply side, the cost support for coke prices weakened. Meanwhile, some steel mills slowed down their procurement pace as the coke inventory increased to a reasonable level. As such, the inventory of some coke enterprises increased.

On the demand side, the coke inventory of steel mills increased significantly recently, and thus the steel mills were less active in coke procurement.

On the whole, some steel mills began to control the pace of arrivals and the coke supply tends to be loose. Coupled with the weakening cost support, it is expected that the short-term coke market may be stable and weak.