SMM Coking coal and coke market review and forecast (Aug 7)

SHANGHAI, Aug 7 (SMM) –

Coking coal market:

Safety inspections and logistic disruptions prevented coking coal supply from increasing. Coal mines mainly met early orders, and had no inventory pressure. However, higher-than-expected prices of some coal types shifted a few traders and independent coal washing plants towards less demand and more deliveries.

Coke market:

In terms of fundamentals, the fourth round of coke price increase was seen, and profits of coking plants improved, luring some plants to slightly increase production, thereby adding additional coke supply to the market. In addition, with smooth delivery, in-plant coke inventory remained low. Restart of BF steel mills brought with it good demand for coke, while low coke inventory was monitored. However, with impact of policy of crude steel production restriction and sustained terminal demand weakness, demand for coke may weaken in a near future.

On the whole, restart of more BFs in steel mills will increase output of pig iron, bringing with it acceptable demand for coke. However, crude steel production restriction of some steel mills and a stark fall in coke futures prices will dent demand for coke. Coke market may swing on a stable footing on the near-term horizon.