Coke prices at downside risk

Coking coal stocks at mines have fallen to low levels. Backed up orders received before the Chinese New Year, mines are under little inventory to sell.

As construction sites have not yet re-opened, steel stocks continue to build up. In view of thin margins or losses at steel mills, coke prices may still be at risk of another 1 or two rounds of cuts in the short term.

If demand recovery in the upcoming traditional peak season of March-April fails to meet expectations, coke price could head for sharp drop.