Due to factors such as policies, supply, and demand, the coking coal market showed a strong upward trend in July, and sentiment only declined towards the end of the month. According to the monitoring system of SunSirs, as of July 30th, the price index of SunSirs's coking coal was 1,351.25 RMB/ton, an increase of 11.10% from the beginning of the month.
On the supply side: Due to safety production inspections and delays in resuming production, domestic coal mines have experienced regional production cuts, and some coal types (such as Lvliang Lishi main coking coal) have implemented sales restrictions. The supply of main coal types such as Linfen main coking coal is tight; 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: The downstream is currently in the peak season of demand, with fast consumption and significant growth in demand, leading to a tense market sentiment. Downstream steel mills have good profits, with daily iron production reaching a historical high of 2.58 million tons, driving up the consumption of coking coal and providing strong support for coking coal; At the same time, the surge in electricity demand during the high temperature season in July, coupled with the release of seasonal replenishment demand from downstream enterprises, further boosted procurement willingness.
According to analysts from SunSirs Coking Coal, the coking coal market saw a strong upward trend in July due to tight supply caused by sales restrictions and reduced coal mine production; 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 steadily with a moderate to strong trend next month. More attention still needs to be paid to the supply and demand situation and the transaction of building materials.
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