Market bearish sentiment is growing, and coke prices stabilize

Coking Coal Market:

Linfen low-sulfur primary coking coal is quoted at 2,000 yuan/mt. Tangshan low-sulfur primary coking coal is quoted at 2,010 yuan/mt.

Today, coking coal futures continue to fluctuate weakly. In the spot market, on the supply side, recent coal mine accidents show an increasing trend, but the overall impact on the supply side is minimal, and supply continues to stabilize. On the demand side, downstream coke enterprises mainly restock as needed, but due to the impact of price cuts expected for coke, these enterprises are driving a hard bargain, and the sentiment of watching and waiting has significantly intensified. Therefore, in the short term, under the impact of price cuts expected for coke, coking coal prices are expected to remain stable with a weak trend.

Coke Market:

The average price for Grade 1 metallurgical coke (dry quenching) is 2,340 yuan/mt. The average price for Quasi-Grade 1 metallurgical coke (dry quenching) is 2,200 yuan/mt. The average price for Grade 1 metallurgical coke (wet quenching) is 1,940 yuan/mt. The average price for Quasi-Grade 1 metallurgical coke (wet quenching) is 1,858 yuan/mt.

Today, coke futures experienced wide fluctuations, but bearish sentiment continued to ferment in the market. On the supply side, coke enterprises maintained stable supply, with high operating rates. On the demand side, the destocking of steel products slowed down, and coke demand may decline, weakening the support for coke demand. Additionally, the weakening support from upstream coking coal prices has loosened the cost support for coke. Furthermore, some downstream steel mills have started to accumulate coke inventory, and current profitability is relatively low. Therefore, bearish sentiment for coke is growing stronger, and in the short term, coke prices are expected to remain stable with a slight downward trend.