Last week, the coking coal market continued its weak pattern. According to the monitoring system of SunSirs, as of May 23, the price index of SunSirs coking coal was 1,321 RMB/ton, a decrease of -7.36% from the beginning of the month.

Supply side: Currently, the supply of coking coal is relatively loose, with sufficient inventory, mainly focused on clearing inventory. Some coal mines have affected production due to excessive inventory. Overall, there is an oversupply in the coking coal market, and high inventory is difficult to consume in a short period of time, resulting in a continuous decline in coal prices.

Downstream: Downstream coke enterprises have weak purchasing enthusiasm, mainly focusing on on-demand procurement, and the market transaction atmosphere is cold. The production of molten iron has declined, terminal procurement is not active, market prices have fallen, and the demand for coking coal has insufficient support, resulting in a downward trend in prices. More attention should be paid to downstream iron production and building material transactions.

According to analysts from Shengyishe Coking Coal, the current market for coking coal is characterized by strong supply and weak demand, with insufficient support from downstream demand and a focus on essential procurement. Overall, the coking coal market is weak and declining, and it is expected that the weak pattern may continue in the later period. More attention still needs to be paid to the supply and demand situation and the transaction of building materials.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.