According to the commodity market analysis system of SunSirs, the coke market temporarily stabilized from August 28 to September 4, 2023. On September 4, the price of quasi first-class metallurgical coke in Shanxi region remained unchanged at 1,980 RMB/ton.
In terms of supply: The coking coal market has been operating steadily recently, and with the resumption of some coal mines that have recently ceased production, the overall supply of coking coal is currently stable. Encouraged by the recent rise in futures trading, market sentiment has improved, with slightly stronger purchasing intentions for coking coal, and some coal prices have slightly rebounded.
After the first round of lifting and lowering in the coke market, prices remained temporarily stable last week, but the overall market atmosphere was weak. In terms of supply, there has been a slight increase in the prices of some types of coal in the coking coal market recently, which has increased the cost pressure on coking enterprises. However, the operating rate has not yet changed significantly, and the overall operating rate remains above 77%. The supply of coke is still acceptable, but due to weak shipping, there is currently a slight accumulation of coke inventory. In terms of demand, the finished product market has recently seen a slight increase, and market sentiment has slightly improved. The steel plant is still in demand for coke, and the black series futures performed well during the week, driving an improvement in market sentiment. In the future, there is an upward trend in the raw material coking coal, and the futures market has risen to boost the market. Downstream steel mills still have demand. Overall, it is expected that the coking market will temporarily stabilize in the short term, with a focus on the price trend of coking coal and the sales of finished products in the future.
The price of coke in the Shandong port market is temporarily stable. As of the 4th, the quasi first level ex-warehouse price of the port is around 2,050-2,100 RMB/ton, and the first level ex-warehouse price is 2,150-2,200 RMB/ton. The port market is temporarily stable, with inventory at the two ports slightly declining, and traders' intention to gather at the port is weak, resulting in cold trading.
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, the overall inventory of ports decreased, and the enthusiasm of traders to gather at ports remained weak. Freight prices slightly increased, and the market had a strong wait-and-see atmosphere.
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