Coke Market Outlook: Eleventh Round of Price Cuts Underway Amid Ample Supply and Weak Demand

[SMM Coal and Coke Daily Commentary]

In terms of supply, the eleventh round of coke price cuts has begun. Profit margins among coke enterprises have diverged, with some experiencing losses. However, most coke enterprises have maintained slight profitability due to concessions on raw material costs, sustaining previous production levels.

Demand side, blast furnaces in the Tangshan region have gradually resumed operations following environmental protection-driven production restrictions. Although steel mill operating rates have increased, the Two Sessions policies provided no significant support, making it difficult for steel prices to improve. Additionally, most steel mills still hold high raw material inventories, leading to strong pressure on coke prices.

In summary, coke supply remains ample, and the fundamentals are still relatively loose. In the short term, the coke market may fluctuate downward, with the eleventh round of coke price cuts likely to be implemented this week.