Zhuochuang Information: Hebei Steel Mills Expected to Operate at Limited Capacity, Coke Prices About to Welcome First Price Cut Since Lunar New Year

The Spring Festival holiday has ended, and steel and coke enterprises have accumulated inventory to varying degrees. Coke plant inventories are significantly lower than last year, but steel mills have not reduced coke stocks noticeably. After the holiday, market procurement activity is not high, and combined with expectations of steel plant production restrictions in early March, blast furnace output may decline temporarily. The supply and demand pattern shows strong supply and weak demand for coke, putting pressure on prices. On the supply side, coke plants maintained stable production during the holiday, with some slight inventory buildup; after the holiday, shipments are active, and overall coke supply is sufficient. On the demand side, benefiting from smooth railway transportation during the holiday, the proportion of road transport has decreased significantly. After the holiday, steel mill coke inventories did not decline noticeably, but there is significant pressure to reduce steel inventory. With a forecast of blast furnace output decline in early March, steel mills are controlling coke intake and reducing stocks, resulting in weak support for coke demand. On the cost side, coal mines resumed production quickly after the holiday, but downstream steel and coke companies are not highly profitable and are cautious in procurement, putting downward pressure on coking coal prices. Overall, both coke cost and demand sides lack positive support, and coke prices are steady but under pressure. (Zhuochuang Information)