Key Facts
After the third round of coke price cuts was implemented, losses at coking plants may widen further, curbing enthusiasm for raw coal procurement. Coke and steel enterprises are generally maintaining a low inventory strategy and delaying purchases of high-priced coal grades. Safety supervision in the main production area of Shanxi remains stringent, the resumption of production at suspended mines is slow, prices of some coking coals have risen slightly, and coking plants continue to face cost pressure. Given poor profits, some coking plants have stepped up voluntary output cuts, reducing coke supply.
Market Changes
End-user demand is weak, and essential coke demand continues to shrink. Some coking plants still see inventory accumulation, and coke shipments remain under pressure. Coking coal supply is tight, and prices have rebounded continuously, lending some support to steel prices. The market rebounded from oversold levels this week, sentiment improved, and spot steel prices held firm, with increases of 20-30 yuan in some regions. Raw coal is clearly driving sentiment, and coking plants and downstream steel mills are engaged in intense negotiations.