SMM daily comment on domestic coking coal and coke market (Aug 15)

SHANGHAI, Aug 16 (SMM) –

Coking coal market:

Recently, demand from downstream sectors for coking coal taper off, while selling appetites from traders appeared active, in a bid to withdraw funds. The overall transaction in the coking coal market was subdued. In addition, more unsold online auctions of some coal types were felt from impact of sliding transaction prices of the online auctions, and offers from coal mines started creeping down.

Coke market:

Fundamentally, good profits further shored up coking plants’ incentive to produce, increasing supply. Besides, smooth delivery was reported. Under such circumstance, low inventory at coking plants unfolded. Steel mills with high operation rate and low coke stocks had buoyant demand for coke. However, shrinking profits of steel mills and falling steel prices blunted buying appetites. Therefore, steel mills aimed to purchase coke on a need-to basis.

On the whole, ongoing restart of BFs and low coke inventory at steel mills boosted demand for coke. However, shrinking profits of steel mills dented by extending fall in prices of finished products, coupled with muted terminal demand made a big dent in bullish market sentiment. In a word, short-term coke market may swing on a stable trajectory.