SMM Daily Comment On Domestic Coking Coal And Coke Market (Sep 7)

SHANGHAI, Sep 7(SMM) –

Coking coal market:

Unfavorable factors such as safety inspections in some areas suppressed coking coal’s supply. The short-term market supply and demand imbalance was still evident. The demand from traders and downstream purchases increased, so coal mines shipped smoothly. Some coal types were sold at a substantial premium in recent online auctions. For the above reasons, the bullish sentiment in coking coal market increased and mines raised their quotations for some coal types.

Coke market:

Good downstream demand resulted in coke enterprises’ in-plant coke inventories continuing the downward trend. The rising cost of coking coal has compressed the profits of coking plants, but it was not enough to affect normal production, so coke supply was relatively stable. High molten iron output of steel plants and good rigid demand for coke promoted steel plants to replenish coke stock moderately.

Overall, the cost of coking coal increased and the profits of coking companies shrank, but production had not been affected yet. Traders began to enter the market to purchase, and the shipment of coke enterprises improved. Coke inventories mostly remained low and there were signs of tightening coke supply. Therefore, the coke market may remain stable with potential rise in the short term.