After experiencing a surge in prices earlier this year, domestic coking coal and coke prices have generally declined since mid-August. Securities Times reporters learned that expectations of a supply contraction in the coal industry persist, and the seventh round of price increases for coke has begun. With tight supply, the coke and coke markets are expected to remain stable and somewhat strong in the short term.
"Currently, most coal mines are operating normally, but due to the impact of policies such as the industry's 'anti-involution' capacity reduction and coal mine approved capacity inspections, there is an expectation of contraction in the supply side of the coal industry in the future. At the same time, coking plants are currently mainly replenishing inventories based on just-in-time demand, speculative demand has declined, and market wait-and-see sentiment has increased." Regarding the recent coking coal market trend, Zhang Min, an analyst at Zhuochuang Information, said that the seventh round of coke price increases has already started on August 18, and the bargaining power between steel and coke has intensified, but there is still a certain expectation of implementation. In the later period, there will be a certain contraction in the coking coal supply side, but downstream steel and coke companies are facing production restrictions, coking coal demand has slowed, market wait-and-see sentiment has increased, and the market faces the risk of high-level pressure.