Coke Prices Will Face Downside Risks

SHANGHAI, Jun 12 (SMM) – Coking coal market: Growing supply and limited new orders exacerbated inventory pressure of coking coal mines. However, some mines held offers firm as high coal quality attracted coking plants. In terms of auctions, coking coal prices diverged, intensifying wait-and-see sentiment.

Coke market: Rising coke futures prices allowed market sentiment to pick up. Most coking plants reported high inventory. Most steel mills restocked coke as needed as their coke inventories are a reasonable level, except for a few mills whose coke inventories are about to run out. Given ample supply and weaker cost support, coke prices will face downside risks.