SHANGHAI, Jan 12 (SMM) - The coke market looks set to stabilise in the near term.
Coking coal market
Purchases by downstream buyers and traders have decreased, and online purchases were also sluggish. The prices of some high-priced coal products continued to fall. Nonetheless, coking coal supply has tightened further as some coal mines have shut down for CNY holidays. Quotations of coal mines are stable.
On the supply side, most coking plants suffered losses. This, combined with regional environmental protection policies, prompted some coking plants to cut output. But coke inventories continue to accumulate amid poor demand.
On demand, as the profit of some steel mills has recovered, the pressure on coke prices may ease. But some steel mills have cut output for maintenance, weakening demand for coke. This, together with the sluggish trades of steel, caused a few steel mills to push for lower coke prices.
The supply of coke remains ample, while the downside room for coking coal prices will be limited. Most coking plants are expected to cut output amid extending losses. The coke market will stabilise in the near term.