China’s coke prices have declined obviously since February, as steel mills cut purchase prices while maintaining low purchases amid continued weakness in steel demand, sources said.

One Shandong-based steel mill said they have adjusted down coke purchase prices by 10-20 yuan/t to 970-980 yuan/t, delivered basis, from February 3, the third price cut over the past month.

One Beijing-based steel producer also said they cut coke purchase price by 20 yuan/t to 1060-1090 yuan/t, delivered basis.

Meanwhile, one Hebei-based end user noted that the price of Grade I coke provided by Inner Mongolian suppliers has decreased 20 yuan/t since February.

Besides lower-than-expected restocking demand, the decline in prices of coking coal used for coke production, as well as the sluggish steel market are two main factors supporting steel mills’ price cut request, sources said.

China’s coking coal prices have been on the downward trajectory recently, largely attributed to weak demand before the traditional slack period as the Lunar New Year holidays approach.

Shanxi Coking Coal, the country’s largest coking coal producer, hasn’t adjusted down prices yet, but market sources said it may increase discounts to boost sales.

The imported coking coal prices have also dropped, due to falling domestic steel and coke prices amid weak downstream demand.

One Hebei-based coking plant said the ex-stock prices of major coking coal products at Jingtang port have dropped 40-50 yuan/t from early January, with Australia first-tier hard coking coal down 40 yuan/t to 880 yuan/t, while the second-tier material down 40 yuan/t to 840 yuan/t.

Several domestic miners have decided to extend suspension till the Lantern Festival on March 5, lasting 15 days, reducing supply to some extent, sources said, adding it will not impact the overall market greatly.