This week, the domestic coking coal market has been operating steadily with a moderate to strong trend. According to the monitoring system of Shengyi Society, as of August 8th, the price index of Shengyi Society’s coking coal was 1441.25 yuan/ton, an increase of 3.59% from the beginning of the month.

Supply side: Due to safety production inspections and delayed resumption of production, domestic coal mines have experienced regional production reductions, resulting in slightly tight inventory; In terms of imports, transportation bottlenecks in major producing countries such as Mongolia and Russia have exacerbated the supply gap, and although inventory levels are high, digestion is accelerating.
Downstream: Downstream coke enterprises have completed the early replenishment of inventory and currently maintain a focus on essential procurement. Downstream steel mills have good profits and currently have low inventory. They are more proactive in purchasing raw materials, which has led to an increase in coking coal consumption and provides some support for coking coal. ‌
According to analysts from Shengyi Society, the supply of coking coal is tight; The downstream rigid demand has significantly increased, and there is a large profit margin for replenishing inventory, which has driven up the consumption of coking coal. It is expected to operate in a narrow range in the later stage, and more attention still needs to be paid to the supply and demand situation and the transaction of building materials.