Coke and Coking Coal Highlights

摘要

Coke prices are modestly higher than at the end of September as we expected, as a result of reduced coke production as well as declining stock levels at steelmakers. The expectation remains that coke prices, both Chinese domestic and export, have the potential to increase further in November, but in our opinion the gains will be capped by the inability of steelmakers to end the recent downturn in finished steel prices which will again weigh on crude steel production decisions as well as steelmakers' willingness to accept higher coke prices. The coking coal market remains well supplied and miners will likely look to sustain prices and limit losses in the near term. Buyers, on the other hand, will hold out of the market expecting lower offers in the lead up to late-November stock building We believe Chinese import prices are still on course to rise from December.