The Sixth Round of Coke Price Cuts is Likely Post the Labour Day Holiday

SHANGHAI, May 4 (SMM) - The supply of coke declined as coking companies were less active in production in light of falling profits and increasing inventory. On the demand side, the rigid demand for coke also fell as some steel mills with sufficient coke stocks in Shanxi were unwilling to purchase and planned to carry out maintenance. On the cost side, the cost support for coke prices continued to weaken as coking coal prices were lowered further last week. To sum up, the sufficient supply of coke extended and the steel mills still intended to lower their purchasing prices amid weak market. In addition, the costs of coking companies continued to decline. Therefore, SMM believes that the coke prices may continue to weaken after the Labour Day holiday, signalling at the sixth round of coke price cuts.