SHANGHAI, May 25 (SMM) - Regarding coking coal, downstream bearish sentiment still exists. There are also aborted online auctions, and part of the transaction was finalised at around the starting price. However, coking enterprises are now starting to restock moderately, and the coking coal stocks pressure faced by coal mines is relatively small, hence the mines generally hold firm to their prices.
In terms of coke, some steel mills in Shandong, Shanxi and Hebei are planning to initiate the fourth round of coke price cut by 200 yuan/mt. But local coking enterprises are reluctant to lower their prices in light of stable operating rates, contracting profits and falling coke stocks.
On the demand side, steel mills are trying to force down coke prices further amid low profits and poor sales of steel prices despite high operating rates of blast furnaces.
Generally speaking, the in-plant coke stocks of coking enterprises have started to fall as traders begin to purchase coke albeit poor sales of steel products. And coking coal prices are also stabilising. It is expected that coke prices will also stay stable with some downward potential.
