SunSirs: China Coking Coal Prices were Strong on May 12

According to the monitoring of SunSirs, the average market price in North China was 1,536.67 yuan / ton on May 1, and 1,596.67 yuan / ton on May 12, with a price increase of 3.9%. Coking coal price is relatively strong in the near future.

On May 11, the coking coal commodity index was 117.84, unchanged from the previous day, down 3.04% from 121.53 (March 12, 2019), the highest point in the cycle, and up 162.39% from 44.91, the lowest point on January 28, 2016（ Note: period refers to the period from September 1, 2012 to now).

According to SunSirs, on one hand, due to the impact of environmental protection inspection, domestic coal enterprises are limited in production; on the other hand, external Australian coal imports are expected to shrink, and the overall supply of coking coal is still tight. Some data show that the total inventory of coking coal mines decreased 6.49% on a week to month basis. Traders have the psychology of price sparing, and the overall market is hot.

Demand: on May 11, the sixth round of increase of coking enterprises was basically implemented, with an increase of 120 yuan / ton for dry quenching and 100 yuan / ton for wet quenching. According to the price monitoring of SunSirs, the price of grade II metallurgical coke in Shanxi is 2,480 yuan / ton. However, the overall supply is still tight and the inventory in the plant is low. The downstream steel plants have higher profits in the near future, higher operation rate, better demand for coke, lower inventory of coke in the plant, and obvious demand for replenishment. At present, the overall market is relatively strong and the coke supply is relatively tight. Because the profit of coke enterprises is good, the enthusiasm of coke enterprises to start is high, there is still a demand for coking coal, and coking coal has a demand side support.

According to SunSirs coking coal analysts, the overall supply of coking coal is relatively tight due to the impact of environmental protection inspection. In terms of downstream coke: the downstream coke enterprises have raised the coke price for the sixth round, the coke enterprises are more active in starting, the coke price is stable and running better, there is a demand for coking coal to supplement the storage, and the coking coal is supported by the demand side. Generally speaking, the short-term coking coal market is relatively strong depending on the downstream demand.

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