SMM Daily: Coke Market Fundamentals Loose, Expecting Sixth Price Cut Soon

[SMM Daily Review on Coal and Coke]

In terms of supply, coke profits per mt continue to narrow, but with lower costs for coal entering the furnace, coke enterprises still maintain certain profitability. Meanwhile, with the relaxation of environmental protection policies, the capacity utilisation rate of coke enterprises has increased, leading to a continuous rise in coke production and growing pressure on their own inventories. On the demand side, end-use demand remains in off-season mode, and steel mills show low willingness to restock coke, maintaining a cautious purchasing attitude, with some mills controlling the arrival of goods. In summary, the operating levels of coke enterprises remain high, the fundamentals of the coke market are still relatively loose, and the short-term coke market is expected to remain under pressure, with the sixth round of price cuts expected to take effect soon.