According to the Commodity Market Analysis System of SunSirs, from July 14 to July 21, 2023, the second round of increase in the coke market was implemented. As of July 21, the price of quasi first-class metallurgical coke in Shanxi region was 1,878.33 RMB/ton, an increase of 4.58%.
In terms of supply: Recently, the coking coal market has been operating strongly, and there have been many safety inspections in some mining areas in China. Some mining areas have ceased production, resulting in a slight shortage of supply. After the second round of increase in coke prices, the current purchasing enthusiasm is still good. The auction situation has performed well recently, with almost no online auctions and auction prices constantly rising.
During the previous cycle, the second round of increase in coke prices was implemented, with a cumulative increase of 100-120 RMB/ton. The price of coking coal continues to rise, and the cost of entering the furnace for coking enterprises has increased. Due to the combined impact of profit and environmental inspections, the operating rate of coking enterprises slightly decreased last week, and the supply of coke has been tightened. Currently, the inventory in coking enterprises is generally low. In terms of demand, the profits of the steel plant have recovered to some extent this week, and the operation of the blast furnace has been relatively stable, with good enthusiasm for coke procurement. On the 21st, coke companies in Hebei, Shandong and other regions launched their third round of increase of 100-110 RMB/ton, and as of the deadline for publication, downstream steel mills have not responded yet. Overall, the recent performance of the coke market is characterized by tight supply and strong demand, and it is expected that the operation will be mainly strong in the short term.
The price of coke market in Shandong ports rose slightly. The quasi primary ex warehouse price of ports was around 2,050-2,100 RMB/ton, and the primary ex warehouse price was 2,150-2,200 RMB/ton. The port market price rose slightly. The third round of increase in the Spot market opened, and the port mentality improved slightly. The inventory of the two ports did not change much. The intention of gathering ports recovered to some extent, and the actual transaction was slightly lower.
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. This week, there was a slight decline in port inventory, and the enthusiasm of traders to gather at the port slightly recovered. However, the wait-and-see atmosphere was strong, and the market atmosphere slightly improved due to the impact of three rounds of rising prices.
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