SMM Daily: The fourth round of coke price cuts landed, further exacerbating losses for coke enterprises.

On the supply side, coal mines across the country have resumed production one after another after the holiday, increasing the pressure on the supply side. However, market rumors suggest that overall coal supply may be reduced this year, coupled with stricter safety production checks at coal mines, it is expected that the pace of coal mine production recovery may be slower than in previous years.

On the demand side, the fourth round of coke price cuts landed today, further exacerbating losses for downstream enterprises and leading to more passive purchasing behavior. Overall, downstream coke enterprises have already experienced two rounds of price cuts after the Chinese New Year, but only a small decline in prices of some coking coal. Downstream coke enterprises face significant cost pressures, and in the short term, coking coal prices are expected to remain weak.