SMM daily comment on domestic coking coal and coke market (Aug 30)

SHANGHAI, Aug 30 (SMM) –

Coking coal market:

Some coal mines have resumed production after passing safety checks, thus coking coal supply shortage was eased. But since inspections after frequent coal mine accidents became more stringent, there were still mines shutting down. Due to profit issues, downstream factories mainly replenished their inventories as needed. And because most transactions were completed at the starting price of online auctions, the market’s bearish sentiment remained unabated. Prices of more expensive coal may fall back due to growing stocks.

Coke market:

In the fundamentals, profits of coke companies were acceptable, operation rate remained stable, and coke plants were eager to sell. However, traders and steel mills were less active in purchasing, which led to the oversupply of coke. Meager profits of steel mills and eough coke stocks on hand kept mills cautious about buying coke. Overall, market sentiment is sluggish and short-term coke market is expected to be under a downward trend.