SHANGHAI, Sep 15 (SMM) –
Low-sulfur coking coal in Lvliang, Shanxi was quoted at 2,100 yuan/mt, while the quotation was 2,100 yuan/mt in Linfen and 2,020 yuan/mt in Tangshan.
Strict safety inspections in Shanxi cut coal mine output. Downstream coke companies appropriately replenished inventories, online auctions were acceptable, and some mines’ quotations continued to increase. However, high prices led to a growing wait-and-see sentiment among market participants, and transaction prices began to fall slightly.
The national average price of first-grade metallurgical coke-CDQ is 2,450 yuan/mt, the national average price of quasi-first-grade metallurgical coke-CDQ was 2,310 yuan/mt, the national average price of first-grade metallurgical coke-wet quenching was 2,040 yuan/mt, and the national average price of quasi-first-grade metallurgical coke-wet quenching was 1,958 yuan/mt.
Rising production costs compressed the profit margins of coke companies. In addition, recent environmental protection policies and safety inspections caused some expectations of production reductions in cokes. The production enthusiasm of downstream steel mills was good, so coke shipments were smooth, and the output of pig iron continued to be high, forming a strong demand for coke.
Overall, coke factories held low inventories and planned to reduce production, so the coke supply may tighten. High pig ore production, solid rigid demand support, and rising coking coal prices supported coke prices. However, since coke inventories in steel mills are relatively sufficient, the short-term coke market may be temporarily stable.