Several steel companies discreetly commented coke prices may experience a sixth round of cuts in the following days, as downsides remained after the fifth round and steelmakers maintained sluggish purchases.

On December 27, the fifth round of metallurgical coke price decline of 50-55 yuan/t fully materialized, adding an accumulative drop since late October to 250-275 yuan/t.

Coking coal market in main production regions also witnessed substantial declines in the past week, offering more room for cokemakers to make a profit and offsetting the negative impact of the latest coke price slash.

As such, there is no obvious production control seen on coke supply side yet.

However, steel producers were still conducting routine maintenance of blast furnaces, due to thin trading activities and meager profits, with molten iron production continuing a downward trend, weighing down coke purchases.

A Hebei-based steel company said he constrained approximately 20% of production so far, and this is widely seen at other nearby steelmakers.

"We are planning to ramp up coke procurement to stock up during the winter peak season and ahead of the Chinese New Year holiday, but the final volume won't be large, possibly building inventories 2-3 days' consumption more," one main steel company based in Shaanxi noted.

Nevertheless, steelmakers are seemingly quite conservative in proposing the sixth price drop.

"Although steel firms are well-positioned to implement another coke price cut, the concentrated pre-holiday purchases are likely to offer certain upsides to support coke prices," another Hebei-based coke firm indicated.

"We will maintain a prudent stance in procurement, and sustain coke inventories around 110,000 tonnes or so," one steel producer in Shanxi said.

Some others also predicated a slew of economic stimulus policies are about to be made to bolster China's flagging property market, as well as the overall economy.

Policymakers are expected to follow through on state bank recapitalization plans and raise local government debt quotas to support the housing market. This includes increasing quotas to around 5 trillion yuan for 2025 to stabilize the property sector.

On December 30, the CCI assessments for Luliang and Tangshan Quasi Grade I Met coke stood unchanged at 1,460 yuan/t, ex-plant with VAT, and 1,660 yuan/t, DDP with VAT, respectively, and that for Rizhao Quasi Grade I Met coke was also flat at 1,600 yuan/t, FOB with VAT.