First Round of Coke Price Cuts Loom Large

SHANGHAI, Mar 31 (SMM) – The first round of coke price cuts is about to come.

On the raw material side, coking coal prices have been going down since March 17. As of March 31, prices of main low-sulphur coking coal in Shanxi fell 100-150 yuan/mt to 2,250-2,350 yuan/mt. In view of ample supply, coking coal prices may drop further, which will weaken cost support to coke prices.

Coking plants maintained high operating rates amid improving profits, while steel mills restocked as needed. Coke supply tends to become more abundant.   

As the end market of steel has not recovered, cost reduction pressure on steel mills will push coke prices down.