Coke Market May Experience Short-Term Downward Fluctuations

[SMM Coking Coal Daily Review: Coke Market May Fluctuate Downward in the Short Term]

In terms of supply, coke producers' production remains stable, with overall sales performing well. Only a few coke producers have implemented slight production cuts due to environmental protection factors. Meanwhile, raw material costs continue to decline, ensuring moderate profitability for coke producers and relatively small production pressure.

On the demand side, steel mills continue to cut production, leading to a decline in pig iron production. Additionally, steel mills maintain high coke inventory levels and show low willingness to restock.

In summary, some coke producers have seen a slight accumulation in inventory and exhibit strong willingness to sell. However, steel mills are purchasing as needed, and the traditional off-season has weakened the end-use market. Steel mills are expected to push for price reductions on coke, with some already issuing letters for a fifth round of price cuts. Therefore, the coke market may fluctuate downward in the short term.