SMM daily comment on domestic coking coal and coke market (Sep 4)

SHANGHAI, Sep 4 (SMM) –

Coking coal market:

Some coal mines, who were suspended after accidents, are resuming production slowly, so coking coal supply still has rising room in September. Recently, coal mine shipments were smooth and transaction prices of some coal types rose slightly. However, some expensive coal may witness price reduction.

Coke market:

Trading atmosphere of coking coal online auction improved, showing signs of price stabilization and rebound. Coke enterprises found it difficult to keep increasing their profits, but since current profits were acceptable, there was no plan to reduce production. On the downstream side, with the support of favorable macroeconomic policies, finished product prices strengthened and the profitability of steel mills was restored. Therefore, steel mills had no plans to reduce production and molten iron output rose, driving the strong demand for coke.

Overall, since the demand for coke expands and coking coal costs may barely drop, the short-term coke market may run stably.