SHANGHAI, May 19 (SMM) - On the supply side, coke prices have dropped three times, with a total price reduction of 600 yuan/mt. Most coke enterprises have suffered a slight profit loss, while the operating rates remain at a high level. However, coke enterprises with high in-plant inventory are expected to reduce their production.
On the demand side, the inventory of coke in steel mills has increased steadily, and some steel mills even have controlled the arrivals. Besides, steel mills that suffered losses would like to see the falling coke prices.
In terms of raw materials, the falling coking coal prices boosted the downstream purchasing. Most coal prices were stable due to the improved online auction recently. However, the transaction of some coals was still poor, and the quotation is still expected to be lowered.
On the whole, steel mills are getting low profits, and the steel prices will probably drop further, hence they are expecting the coke prices to drop. While coke enterprises with shrinking profits cannot accept the dropping coke prices. It is expected that coke prices will be stable with some downward potential in the short term.
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