Coke Prices Decline, Producers' Profits Moderate as Coking Costs Drop

[Steel Mills Control Arrivals, Coke Producers' Profits Moderate, Coke Fundamentals May Remain Loose]

From a price perspective, coke prices have continued to decline, exerting a strong negative impact on coke producers' profit per mt. From a cost perspective, coking coal prices have also seen significant drops. Taking low-sulfur primary coking coal as an example, prices fell from 1,580 yuan/mt to 1,450 yuan/mt, a decrease of 130 yuan/mt, with price drops for other coal types also ranging between 100-200 yuan/mt. The decline in coking costs is evident, significantly offsetting coke producers' losses per mt. Coke prices are expected to decline further, but coking coal prices are also anticipated to drop, which may lower coking costs and help recover coke producers' losses. Most coke producers are expected to maintain profits next week, staying around the break-even point...