SunSirs: Coke Prices Enter Downward Trend in December, Third Round of Price Cuts Expected Before Month-End

Since late November, coking coal prices have continued to decline, accumulating a drop of over 150 yuan per ton to date. Recently, coking coal futures have fallen for four consecutive days, with the main contract declining by more than 9.6%. Short-term prospects for a rebound in coking coal prices remain weak, with bearish factors dominating the cost side for coke.

On the supply side, coke plant profits have recovered, driving sustained increases in coke oven utilization rates. Coke producers are actively shipping, resulting in ample market supply. Some plants face inventory buildup due to slower shipments and rail transport bottlenecks.

Downstream demand-side: Seasonal weakening of terminal steel demand in December, coupled with year-end production quota shortfalls at some steel mills, has led to increased blast furnace maintenance and a noticeable decline in pig iron output, weakening the essential demand support for coke. Overall, cost support for coke remains weak, while the supply-demand fundamentals are shifting from tightness toward easing.

Coke prices face significant downward pressure and are expected to follow the downward trend of coking coal costs. A third round of price reductions is anticipated before month-end.

As an integrated internet platform providing benchmark prices, on December 12, the benchmark price of coke from SunSirs was 1,538.75RMB/ton, a decrease of 2.46% compared with the beginning of the month (1,577.50 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

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