SMM daily comment on domestic coking coal and coke market (Aug 17)

SHANGHAI, Aug 18 (SMM) –

Coking coal market:

With restart of some coal mines, coking coal output increased, and some coal stocks in coal mines picked up, owing to slower downstream demand and traders’ active shipments. In addition, more online auctions failed to be completed. Under this circumstance, bearish market sentiment was reported. Prices of some coal types started declining.

Coke market:

In terms of fundamentals, waning impact of environmental protection and safety inspections, falling costs and good profits stimulated coking plants to produce goods and ship goods. In addition, coking plants kept their operating rate low.

With implementation of crude steel production restrictions and turnaround in coke arriving at steel mills, in-plants inventory at steel mills stood at a rational level, thereby cooling down demand for coke.

On the whole, with meager profits and acceptable coke inventory at steel mills, steel mills largely purchased coke on a need-to basis. In addition, prudent demand from traders was reported. In a word, coke market may roll over on the near-term horizon.