I. Raw Materials (Coking Coal)
Mine supply slightly down, but overall ample; inventories at mines, washing plants and ports all rose.
High-grade coal prices softened; market sentiment turned rational.
Coking coal market is stable with mild weakness, limited upside in short term.
II. Coking Plants
Coking plants are reducing coal stock and profit margins narrowed.
They have strong cost motivation to push coke prices up, but steel mills remain cautious.
III. Steel Mills
Steel mills follow “high consumption, low inventory”, supporting rigid coke demand.
Summary & Outlook
Supportive factors:
Coking plant margin compression, steady hot metal output, resilient coke demand, cost support.
Constraining factors:
Weak finished steel demand, low steel mill profitability, resistance to higher raw material costs.
The second round coke hike is still in negotiation, but likely to be confirmed by late April.
After implementation, the market is expected to stabilize.