After Two Rounds of Price Cuts, the Coke Market Stabilizes in China

December 17th, according to reports

I. Price Trends

According to the commodity market analysis system: On December 17, 2025, the average price was 1,496 CNY/ton. Two rounds of price reductions for coke in China last week have been fully implemented, and the third round of price reductions for coke has already begun. The overall market is mainly under pressure.

II. Market Analysis

Market Perspective: From a market sentiment standpoint, sales are sluggish, the trading atmosphere is subdued, and wait-and-see attitudes are prevalent, weighing heavily on market confidence. Moreover, as we approach year-end, market expectations are relatively pessimistic, prompting continued cautious observation. It’s expected that market sentiment will remain challenging to improve in the short term.

Demand Side: From the demand perspective, the market is clearly exhibiting characteristics of the off-season, with traders slowing down their pace of restocking. Meanwhile, downstream casting orders remain limited, and downstream production activity remains relatively subdued. Coupled with the strong economic viability of scrap steel, demand for pig iron continues to be driven by essential needs only. In the short term, weak demand is unlikely to change, and market prices will continue to trend downward.

Steel mills: As the off-season deepens, construction material consumption is expected to continue to weaken. Steel mills are gradually entering maintenance periods, leading to a weakening expectation in coke demand. However, recent steel prices have shown resilience. Although coking coal prices have been continuously declining, with the completion of annual production targets by coal mines, there is an expectation of reduced coal supply, which is likely to narrow the downward trend in coking coal prices.

Price Implementation upon Landing: After the implementation of two rounds of price decreases, the coking coal market has stabilized. Recently, the decrease in coal prices has narrowed, and the speed at which the cost of coal entering the coke ovens is decreasing has slowed down. However, coke enterprises are still making decent profits, and their production conditions remain relatively stable. Enterprises that previously reduced production due to environmental protection measures are gradually increasing their output, leading to a marginal recovery in the supply of coke.

III. Future Market Forecast

Coke analysts believe that in the short term, there is an expectation of a decline in coke prices. Currently, the third round of price cuts is being initiated, and the overall market is under pressure.