Futures: Coke 2009 hit a high on last Friday, closing at 1,750 (up 9), with a total reduction of more than 6,000 positions and reduced trading volume. Many countries in Europe and the United States plan to restart the economy, boost the shock after the surge in crude oil; domestic supply and demand of building materials are booming, spot prices are rising, and black energy varieties tend to be strong. Short term or pressure fluctuation of coke.

Spot: coke market is stable after the rise, with the first round of 50% increase fully implemented. Quotation of metallurgical coke: Rizhao grade II 1,750 (up 50), Tangshan grade II 1,700 (up 50), Linfen quasi-1,600 (up 50). Port inventory: Rizhao Port 138 (minus 3), Qingdao port 177 (flat). The regional supply is stable, the operating rate remains high, the overall inventory of coke enterprises is at a low level, and there is no sales pressure. In the steel works, the trading volume of downstream building materials remained at a high level, the operating rate of blast furnace increased steadily, and the purchase of coke increased partly due to the recovery of blast furnace output. The port transaction is still weak. After the high-speed toll collection, the increase of highway transportation cost strengthens the spot support. In a comprehensive view, the coke market is stable in the short term, but stronger in the medium term.

Strategy analysis: at present, the government strengthens macro-control, loose policies release liquidity to stabilize the market, fully promotes resumption of work and production, and increases counter cyclical adjustment. COVID-19 spread abroad, many countries implemented monetary easing policies, and crude oil rebounded sharply. The inventory of building materials and social inventory of the downstream steel works has been gradually reduced, the terminal demand has been recovered in an explosive manner, and the overall width of the futures and spot goods fluctuates. Under the favorable influence of domestic and foreign easing policies, the demand for building materials in the second quarter may remain high, and the support will be strengthened after the futures fall to the undervalued and low price areas.

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