SHANGHAI, Jan 5 (SMM) - Coking coal market: The downstream enterprises had less enthusiasm for restocking, which added to the pressure on coal mines to make shipments. However, with the Chinese New Year holiday around the corner, coal mines were still tightening coking coal production to ensure safety, thus the inventory pressure was small. With the support from inventory, coking coal quotations were firm.
Coke market: On the supply side, the profits of coking companies narrowed, and their operating rates remained stable. As coke stocks gradually built up, the coke supply was picking up. On the demand side, the coke inventory of steel mills held at a reasonable level. While the falling demand eroded the profits of steel mills, they mainly purchased coke as needed.
To sum up, the steel mills were less willing to purchase coke, and the accumulated coke inventory at some coking enterprises resulted in growing coke supply. Since the cost support for coke prices is expected to weaken, the coke prices in the short term may be stable or softer.