Core Facts
On August 10, mainstream steel mills in Hebei, Shandong and other regions implemented the third round of cuts to coke purchase prices, by RMB 50-55 per tonne, effective from 00:00 on the 7th. After three rounds of price cuts, coking plant margins have compressed again. Because coal prices remain at high levels, most plants are slightly loss-making, maintaining normal operating rates with little incentive to raise output. In-plant coke inventories are generally low.
Inventory and Logistics
Most coking plants in Shanxi, Hebei and other regions have started output cuts of varying degrees, ranging from 10% to 30%. On the demand side, the steel market has weakened recently, steel mill margins have declined, and coke inventories are at reasonable levels, with purchases mainly for demand-based replenishment. Hot metal output was 2.3803 million tonnes, down from the previous week, reducing coke demand. Some steel mills have begun maintenance and are controlling coke arrivals. On the raw material side, coking coal prices continue to fluctuate with a firm bias.