11th Round Of Coke Price Cuts Is Looming Large

SHANGHAI, Jun 5 (SMM) – Some coking plants raised production after their inventories declined, driving up the average capacity utilisation rate up from 77% to 77.5% last week. Steel mills restocked coke only as needed amid sluggish end market. Traders took a wait-and-see approach.

Summer peak season of coal consumption is about to come, but the price of thermal coal failed to rise and even fell, which soured sentiment in the coking coal market. Coking plants and traders slowed down purchases, causing inventory of some mines to accumulate. As a result, the rally of coking coal prices came to an end.

Coke prices may register the 11th round of cuts this week. However, it’s worth noting that most coking plants are now struggling around the break-even point and some have curtailed capacity by 40%. This may tighten supply and support coke prices in the future. 

More popular news

Fitch Says Falling Commodity Demand Causes Industrial Production To Cool Rapidly And Softer Commodity Prices Such As Copper Are Clear Signs Of Economic Slowdown

Key Takeaway from SMM 2023 Indonesia Nickel and Cobalt Industry Chain Conference: Global Nickel and Stainless Steel Market Outlook 2023-2027 and Indonesia’s Critical Role in Attracting Chinese Investment 

ANZ Bank Is Bearish Towards Iron Ore Prices, Citing Four Key Negative Developments In China

Fitch: Global Trade Is Slowing Sharply And May Grow Only 1.9% This Year

One Of China's Top Two Lithium Giant To Expand Capacity Aggressively As It Bets On Nev And Energy Storage Markets In The Long Run, Despite Cyclical Downturn Of Lithium Carbonate Prices

BHP Plans To Expand Iron Ore Production Aggressively

South China Battles Power Crisis, The Worst This Year

Tesla to Compete with Chinese NEV Rivals Using Redesigned Model 3 Soon, China Has Become Tesla's Second Largest Market after the US