SMM Daily Comment On Domestic Coking Coal And Coke Market (Sep 12)

SHANGHAI, Sep 12(SMM) –

Coking coal:
Low-sulfur coking coal in Lvliang, Shanxi was quoted at 2,000 yuan/mt, while the quotation in Linfen was 2,050 yuan/mt and was 1,940 yuan/mt in Tangshan.
Coal mines basically maintained normal production. Affected by safety inspections, coal supply was tight in some areas. With very few online auction failures and acceptable downstream demand, coal prices are still expected to increase.

Coke:
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.
The operating rate of most coking companies was stable, while some plants reduced production due to shrinking profits. Good shipments led to low coke inventories at coking plants. Steel mills’ production enthusiasm remained undiminished, so the average daily pig iron output and demand for coke stayed high.
Overall, as steel mills and traders became more active in purchasing, coke enterprises faced no inventory pressure. And because of strong cost support, coke prices are expected to rise. However, sufficient inventories in steel mills and the risk of losses resulted in resistance to high prices. In the short term, coke market may run stably.