SHANGHAI, Sep 27 (SMM) – In the raw material side, coking coal inventory kept falling amid increased purchases, which coupled with safety checks in Shanxi, tightened coking coal supply. This encouraged some coal mines to raise offers.
Some coking plants are suffering losses due to rising coking coal costs. Despite high operating rates, coking plants’ inventories declined thanks to smooth shipments.
On the demand side, the pig iron output of steel mills has increased, boosting demand for coke. In addition, as the National Day holiday is approaching, some steel mills are more willing to restock. However, the overall purchases are still driven by rigid demand.
Coke prices are likely to record its first round of increase soon, driven by lower inventory, rising costs, restocking by steel mills, as well as slightly rising steel prices.
