Coking coal market: Coal mines cut their production for security concerns and for an increasing number of infections among workers. At the same time, the purchase of downstream buyers slowed down, with mixed performance of online auction prices. The quotes from mines were generally stable.
Coke market: On the supply side, the fourth round of coke price hike was fully accepted by steel mills last week, which restored the profits of coking companies. However, coking companies were not willing to ramp up the production amid another wave of covid-19 infections. The coke stocks stood low, while the sales were good. On the demand side, operating rates of blast furnaces at steel mills were stable. The vast coke consumption, coupled with the restocking demand for winter, led to ongoing active procurement of coke.
On the whole, coking enterprises were reluctant to increase the production, but steel mills were active to stock up on low coke inventory. Generally, the supply and demand maintained a tight balance, and the prices of coking coal began to stabilise, which weakened the cost support for coke prices. It is expected that the coke prices may remain stable in the short term.
