SHANGHAI, Sep 18 (SMM) –
The transaction atmosphere in the auction market was positive due to the enthusiasm of downstream purchasing and the optimism of market sentiment. Supported by the approaching National Day holiday and the high-level output of pig iron in steel plants, the rigid demand for coking coal remained strong. Recently, frequent safety accidents in coal mines led to a shortage of supply, leaving room for price increases. However, fasting rising prices of some coal types triggered resistance from downstream markets, causing inventory accumulation in a few mines.
Because of the high cost of coking coal, some coal companies began to restrict production, resulting in a slight decrease in coke supply. The shipments of coke enterprises were relatively smooth, and in-factory inventories ran at a low level. The output of pig iron at steel mills continued to be high, so the demand for coke was good. However, since inventories were sufficient, steel mills mainly purchased on demand.
Overall, coke supply and demand are in a tight balance. However, the cost-side support is firm, so the short-term coke market may show a stable-to-strong tendency.