China: Some Coal Prices Started to Fall, Coke Market with Stable Expectations

On the supply side, deliveries were limited in some areas with strict prevention control measures, but production were not affected, while coking enterprises operated normally with smooth shipments. Inventories of coke enterprises run at low levels.

On the demand side, the operating rates of steel mills were running at a high level with high utilization of blast furnaces, while coke stocks continued to fall with high enthusiasm for coke procurement.

In terms of raw material, coking coal stocks in coal mines accumulated, and some prices of the coal bids dropped, leading to the increasing wait-and-see sentiment in the market. Prices of some types of coal started to decrease.

Comprehensively, due to the strict prevention control measures, transport was blocked while the resumption of steel mills went well. The demand for coke was still satisfying, but prices of coking coal were expected to fall. Coking enterprises expect the prices to remain stable. It is expected that the coke market would be at stable operation in the short term.
Source: SMM