1. Raw material spot market：

Supply side: Affected by environmental protection inspections and successive rounds of price declines, the overall operating rate of coking plants is low, and there is a willingness to actively limit production. Supply continues to decline, but inventory accumulation occurs due to poor shipments.

Demand side: Since November, steel prices have fallen by more than a thousand yuan. The steel market has been sluggish and steel mills are facing losses. Steel mills in many places have announced maintenance news, reduced production, and controlled the pace of coke procurement.

In terms of cost: key coal types continue to adjust downward. Currently, the coke market is oversupplied, costs are falling, and the downstream steel market is fluctuating at a low level. In the short term, the coke market is weak. From now on, we need to continue to pay attention to changes in coke costs and supply and demand. If steel fails to bottom out or coking coal prices fall sharply, there is a risk that coke prices will continue to correct.

2. Steel market supply and demand situation

Recently, Hebei, Henan, Shandong and other cities have launched emergency response to heavy pollution weather. In addition, some steel mills are experiencing losses, and steel production is expected to continue operating at a low level.