Coke Prices Kick off the Second Round of Cut

SHANGHAI, Jun 23 (SMM) – In terms of coking coal, both coking companies and steel mills controlled their production to varying degrees in light of losses, and stood on the sidelines concerning the purchases of coking coal. Some coal mines, with incrementing sales pressure, saw rising coking coal stocks. And coupled with a cooler online auction market, the prices of some coal varieties were lowered.

For coke, some steel mills in Shandong, Shanxi and Hebei have initiated a 200 yuan/mt price cut for coke, expanding the losses of coking companies, which have considered to expand the production cuts. A few coking companies experienced rising in-plant coke stocks as steel mills are controlling the arrivals of coke. Nonetheless, most coking companies were smooth in making shipments.

The demand side, on the other hand, has been sluggish amid aggravating losses.

To sum up, steel mills have been strong in forcing down coke prices with more mills carrying out maintenance. And coke prices have dropped more quickly than coking coal prices, exacerbating the losses of coking companies. It is expected that short-term coke prices will still fall.