According to the commodity market analysis system of SunSirs, the coke market temporarily stabilized from June 12 to June 21, 2023. As of June 21, the price of quasi first grade metallurgical coke in Shanxi region remained unchanged at 1,754 RMB/ton.
In terms of supply: Recently, the coking coal market has been operating strongly, with some regions experiencing coal mine production reductions or shutdowns, and some regions experiencing slightly tight supply. The scope of price increase for coking enterprises is gradually expanding, and the overall atmosphere of the coking coal market is improving. Online auctions have performed well recently, and there have been basically no unsold auctions.
During this cycle, the coke market prices have temporarily stabilized and the overall market atmosphere has improved. With the opening of the first round of price hikes by coking enterprises in Hebei, Shandong, and other regions, the range of domestic price hikes has once again expanded. This round of price hikes has increased by 50 RMB/ton for wet quenching and 60 RMB/ton for dry quenching. In terms of supply, coking enterprises have recently started operations relatively steadily, maintaining a normal level of around 75%. The overall supply of coke is stable. With the improvement of market atmosphere and the increase in purchasing enthusiasm of traders, the overall inventory of coke in the factory has declined. Currently, most enterprises operate at a low inventory level. In terms of demand, the sales in the finished product market have improved recently, with an increase in the operating rate of steel mills' blast furnaces and low inventory of coke in the factory. Most manufacturers have a demand for restocking, and the demand support is good. In the future market, the upstream coking coal prices continue to rise, and downstream procurement enthusiasm has recovered. The coke market is showing signs of good performance. After the first round of increase, mainstream steel mills have not responded yet, and the supply-demand game mentality is strong. It is expected that the coke market will be on the sidelines in the short term. In the future market, the focus will be on the inventory situation of coke in various links and the profitability of downstream steel mills.
The price of coke in the Shandong port market has slightly rebounded, with a quasi first level ex-warehouse price of around 1,980-2,030 RMB/ton and a first level ex-warehouse price of 2,080-2,130 RMB/ton. The port market is temporarily stable, with inventory in the two ports slightly increasing, and the first round of increase has started. The market atmosphere has improved, and the intention to gather ports has increased.
Freight prices are a barometer of port mentality, with a positive market attitude towards upward freight prices and a weak market attitude towards downward freight prices. Last week, port inventory slightly increased, and the enthusiasm of traders to gather at the port has resumed. Freight prices have also increased, and the market atmosphere has improved.
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