Coke Prices to Remain Vulnerable to Decline after Five Rounds of Cuts

SHANGHAI, Jul 27 (SMM) –  In the raw material side, some coal mines lowered offers amid poor shipments.  
In terms of prices, some steel mills in Shandong, Shanxi, Hebei and other regions plan to jointly reduce the purchase price of coke by 200 yuan/mt, which is expected to be implemented from July 27. 
The price of coking coal has dropped, allowing the profitability of coking enterprises to be restored, but they still suffer a loss of 300 yuan/mt. As such, coking enterprises have no intention of resuming production for now, and coke supply will remain tight.  
On the demand side, the loss situation of steel mills has improved recently. But additional output cuts by steel mills amid poor end demand has hurt coke demand.  
On the whole, it is expected that the short-term coke prices will remain pressured due to market pessimism and falling demand.