The third round of coke price cuts has been implemented, and the market may enter a phase of bottoming out.

The domestic steel market shows mixed trends, with Tangshan Qian'an ordinary billet ex-factory price including tax rising by 10 to 2930 yuan/ton. In terms of transactions, the market atmosphere in the morning was average, with futures rebar rebounding from lower levels during the day. Some cities have seen a reduction in low-priced resources, and quotes are climbing toward higher levels, leading to a slight improvement in transactions. Overall, the trading volume for the entire day was generally equivalent to that of the previous trading day. Mainstream steel mills in Hebei, Tianjin, and other regions have initiated the third round of coke price cuts, with wet quenching coke down by 50 yuan/ton and dry quenching coke down by 55 yuan/ton, effective from 00:00 on August 7, 2026. The core driving force behind this round of price reductions remains the feedback from the demand side caused by steel mills' losses, leading to a continuous decline in molten iron production. However, tight supply of coking coal and significant losses in coke enterprises are limiting further downward space for coke prices, indicating that the market may enter a bottoming phase. Overall, it is expected that coke prices will continue to run weak in the short term.