SMM daily comment on coking coal and coke market (Aug 11)

SHANGHAI, Aug 14 (SMM) –

Coking coal market:

Coal mines had low inventory pressure, and some cut or halted productions in Shanxi, while thinner demand coke coking coal was reported, and purchase aimed to meet rigid demand.

Traders and coal washing plants actively shipped goods. More on-line auctions failed to be made. Transaction prices of some coal types dipped, and upward momentum was suppressed. Prices of a few coal types retraced down.

Coke market:

In terms of fundamentals, profit revival stimulated coking plants to produce. In addition, smooth delivery was reported, and supply of a few coking plants fell short of demand. With high operating rate, steel mills had rigid demand for coke. Besides, as logistic bottlenecks feeling impact of previous heavy rain explained for poor coke arrivals at some steel mills, fueled robust replenishing demand from them for coke.

On the whole, high operating rate of steel mills, good sales and low coke inventory of coking plants slightly tightened coke supply. On the other hand, a growing reluctance among steel mills was felt from impact of narrowing of profits triggered by steel price erosion. Short-term coke market may swing on a stable note.