[SMM Daily Briefing on Coal and Coke]
In terms of supply, downstream buyers have been actively procuring, and coke producers have seen good shipments, with coke inventory remaining at a low level. However, coke producers have recently been operating at a loss, with production restrictions in place. Moreover, due to stricter environmental protection measures in the Wuhai region, production restrictions have been intensified. Demand side, steel mill profits have been favorable, with operating rates maintained at a relatively high level. There is a rigid demand for coke from steel mills, and with traders diverting some of the supply, some steel mills are urging for faster deliveries. In summary, the supply of coke has begun to tighten, and cost support remains strong. The coke market may continue to hold up well in the short term, with expectations of further price increases next week.