Coke Prices may Grow amid Better Downstream Demand

SHANGHAI, Feb 28 (SMM) - 

Coking coal:

Coking coal output dropped amid the upcoming Two Sessions, while the downstream companies and traders bought some goods, driving the market sentiment and the quotes of some coals.

Coke:

On the supply side, traders have gradually raised their purchasing volume recently, and some steel mills have also increased their purchases of coke, thus coke stocks carried by coke companies have continued to decline.

On the demand side, the steel mills maintained high operating rates since they bore little impact from the environmental protection-related production restrictions.

On the whole, the coke companies bore huge losses amid the rising costs, and they intended to raise their quotes. Meanwhile, some steel mills planned to increase their purchasing volume of coke. Therefore, SMM presumes that coke prices will be stable with occasional rises.