Coke Prices may Rise amid Bullish Market Sentiment

SHANGHAI, Mar 3 (SMM) - On March 2, the transaction prices of first-grade metallurgical CQD in Luliang, Shanxi were 2,890 yuan/mt, flat from the previous day.

Strict safety inspections weighed on the supply of coking coal while the downstream demand was released. Traders purchased actively and the prices of coking coal were strongly supported. Coupled by the price premiums in online auctions, the quotations of some coal types have risen.

On the supply side, most coke companies have temporarily stabilised their production, while a few coke companies were limited by environmental factors. At present, the shipment of coke companies performed well, and coke stocks remained low.
On the demand side, steel mills resumed the production steadily and the output of pig iron continued to increase.
On the whole, the supply and demand of coke are relatively balanced and the sales of coke companies are acceptable. Coupled with rising costs, the market players still hold a bullish attitude, and the short-term coke prices are expected to rise.