SMM daily comment on domestic coking coal and coke market (Aug 31)

SHANGHAI, Aug 31 (SMM) –

Coking coal market:

The slow resumption speed of suspended coal mines in Shanxi suppressed the supply of coking coal. Coke companies slowed down their purchasing of coal, and traders have a strong wait-and-see attitude. A slowdown in purchases by coke companies and a strong wait-and-see mood of traders led to signs of inventoty backlog in some coal mines. Online auctions were mixed and fewer transactions failed.

On Thursday, prices of ferrous metals futures generally rose, lifting coking coal market sentiment, with quotations temporarily stable.

Coke market:

In terms of fundamentals, most coke enterprises were profitable and the operating rate was normal. However, the downstream enthusiasm weakened, restricting shipments of coke to varying degrees. Some of coke plants faced increasing inventories, but most didn’t encounter obvious inventory pressure. Steel plant production remained at a high level, and there is a certain purchase demand for coke. But meager profits of steel mills and enough coke stocks on hand dragged down purchase intention.

In summary, the purchasing enthusiasm of some steel mills declined, and coke enterprises’ shipments slowed down, causing inventories to accumulate. Coke supply tends to be more abundant. However, combining factors of frequent macro-positive news and soaring coke futures, short-term coke market may temporarily operate stably.