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Mysteel: The strong trend in the coal and coking market in Shanxi remains unchanged for now

2020-11-25View Original

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Mysteel Shanxi Coal and Coke Market Report: The coke market was strong on the 25th. On the demand side, there are no obvious signs of restrictions or production cuts at steel mills’ blast furnaces; with profits improving, steel mills are quite motivated to continue producing. At present, the average daily output of molten iron is high, resulting in a strong demand for coke ; Port inventories increased slightly, and the modest increase had little impact on the overall market. On the supply side, coking enterprises have virtually no inventory on site, and recent environmental regulations that restrict production have led to a reduction in supply, thereby supporting relatively strong prices for coke. Overall, the reduction in supply due to cuts in coke production, coupled with strong demand for coke from steel mills’ blast furnaces, has kept coke prices high; there are no clear signs of change at present, and the coke market in Shanxi remains strong. Regarding coking coal, safety inspections in coal mines on the supply side and environmental regulations that limit production have led to a reduction in the supply of some coking coal, which in turn has an impact on prices by affecting supply levels. On the demand side, coking plants are operating at high capacity levels. With strong price increases in primary coking coal, adjustments to the coal blending mix have led to shortages of coal types such as fat coal and gas coal as well; it is expected that factory prices will gradually be adjusted in the future. Overall, coking coal in the Shanxi region is currently on an upward trend in the market.

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