SHANGHAI, May 18 (SMM) - The leading steel mills in Hebei and Shandong regions lowered the purchase price of coke by 200 yuan/mt, marking the third round of coke price reduction. After the adjustment, the first-grade metallurgical coke was 3,300 yuan/mt, and the quasi-first-grade metallurgical coke was 3,150 yuan/mt, and both were were ex-factory prices in cash. At present, the production level of coke enterprises is relatively high, and some coke enterprises maintain full production, but the third round of coke price reduction may drive some coke enterprises to reduce production.
Demand side: Most steel mills have reasonable level of coke inventories and purchase on demand. However, given the recent weakness in steel market, steel mills still plan to lower coke prices further.
In light of relatively high coke inventory at steel mills and decline in coking coal prices, coke prices will remain under pressure in the near term.