SHANGHAI, Aug 24 (SMM) –
Coking coal market:
The recent frequent safety accidents have led to stricter local safety inspections, causing the coal market’s supply to shrink. Since the purchasing pace of downstream enterprises and traders slowed down, coal mine shipments were not good, and coal inventories in some mines accumulated. Recently, the online auction transaction price of coking coal continued to decline, and the price cut expectation of coking coal was strong.
Coke market:
Coke plants produce actively and face little inventory pressure due to rigid demand from steel mills. High output of molten iron in steel mills required more coke inventory. But profitability is poor, so steel mills try to bargain down coke prices.
Overall, poor profitability of steel mills and the recent arrival of coke resulted in an on-demand purchasing state. Combined with the above factors, steel mills intended to lower prices, the short-term coke market will remain basically stable with a downward trend.
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