Coke Futures Fluctuate Narrowly as Sixth Price Cut Hits Market, Coking Coal Prices Seen Weakening

[SMM Daily Commentary: Coke Futures Experience Narrow Range of Volatility, Fifth Round of Coke Price Reduction Takes Effect]

The quoted price for low-sulfur prime coking coal in Linfen stands at RMB 1,750 per ton. The quoted price for low-sulfur prime coking coal in Tangshan is RMB 1,790 per ton.

On the supply side, coal mine production remains stable, and the supply of coking coal continues to be ample. On the demand side, the sixth round of coke price reductions swiftly materialized today, intensifying the bearish sentiment in the downstream market. Looking ahead, as coke prices are still expected to decline, coke enterprises' losses will continue to widen, and purchasing enthusiasm is unlikely to improve in the short term. Coupled with the sustained stability of coal mine production, the contradiction between supply and demand fundamentals for coking coal will gradually widen, leading to a projected continued weakness in coking coal prices in the short term.