SHANGHAI, Aug 10 (SMM) –
Coking coal market:
Two fatal safety accidents in Shanxi led to shutdown of capacity for rectification, and a coking coal supply crunch lingered.
While there was cautious demand from some coking plants for some high-priced coal types and weaker market sentiment triggered by more auctions of coal mines failed to be made. Therefore, some high-priced coal types may retrace down.
Coke market:
In terms of fundamentals, coking plants saw smooth delivery amid robust demand, and in-plant coke stocks remained low. In addition, pick-up of profits lured a few coking plants to slightly increase production. With high capacity utilization rate of BFs, coke inventory at steel mills kept shrinking, bringing with it replenishing demand for coke. However, with continuous fall in steel prices and poor profits, steel mills were reluctant to accept the fifth round of coke price hikes.
On the whole, given falling steel prices and implementation of crude steel output limit seen in many places, more steel mills were reluctant to accept coke price hikes. But on the other hand, the mills had replenishing demand coke amid high operation rate of BFs and low coke inventory. In a word, short-term coke market may appear stable-to-firm, and the fifth round of coke price hikes may unfold.
