Weekly Recap: Chinese met coal and coke market 13-19 Jan

After last week’s rebound, some compared the situation to September-October, but they are fundamentally different. While steel profits, production, and inventory resemble September, that period marked a demand-driven peak season with declining inventories, forcing production increases. Now, in the off-season, weak demand and oversupply limit production growth. Despite good sales last week, cautious sentiment persists, and some mills are ramping up production.

Coke, unlike September, has lower profits, higher production, and much higher inventories. Past price cuts hurt profitability, restricting output. Current pig iron demand doesn't necessitate coke price increases or production hikes. For coal in 2024, any price rise depends entirely on coke price recovery.