Huge uncertainty over China's economic growth has continued to weigh on sentiments in the steel market. According to sources, unless the real estate sector in China sees positive signs soon, the equilibrium between supply and demand may be resolved only with lower prices and serious cutbacks in production. At present, some Chinese steelmakers have been forced to cut output and idle blast furnace operations, seeking lower production costs in addition. In particular, lately Chinese steelmakers have proposed a regular cut in domestic coke prices. The outcome is expected to be seen in the coming days.
The futures market in China has developed appropriately, with coking coal and coke futures prices falling sharply on June 20. Specifically, at Dalian Commodity Exchange (DCE) coking coal futures prices have declined by RMB 254.5/mt ($37/mt) today to RMB 2,322mt ($384/mt). Likewise, coke futures prices have decreased by RMB 342.5/mt ($50/mt) on the same day to RMB 2,921/mt ($437/mt).
