SMM daily comment on domestic coking coal and coke market (Sep 1)

SHANGHAI, Sep 1 (SMM) –

Coking coal:
Some coal mines were still suspended because of strict safety inspections. Multiple influential macro-positive news were issued. So, output and macro factors boosted market sentiment, and failed online auctions were reduced obviously. Coal mine quotations gradually stabilized. However, poor transactions and higher quotations earlier may cause subsequent coking coal price reductions.
Coke:
Coke enterprises still had a certain profit, even after the first round of price decline, and their production enthusiasm was acceptable. However, the downstream purchasing pace slowed down, causing an inventory backlog in some coke plants. This week, the intensive introduction of macro-beneficial policies lifted market confidence, but steel market was still weak. Some steel mills purchased slowly and mainly purchased coke on demand.
Overall, the coke inventory of most steel mills has grown to a reasonable level, so steel mills slowed purchasing speed. Some coke enterprises faced inventory backlog and coke supply tended to be loose, coupled with steel mills’ high intention to lower prices due to thin profits, coke prices are expected to be under downward pressure.