SunSirs: Domestic Coke Market continues to be Weak and Stable

1. Price and Market Analysis

According to the monitoring data of SunSirs, the domestic coke market continues to operate in a weak position, and the future market is still under pressure.

Price: at present, the mainstream prices of secondary and quasi-primary metallurgical coke in Shanghai are 1,980 RMB/ton and 2,050 RMB/ton respectively; in Xuzhou are 1,960 RMB/ton and 2,030 RMB/ton; in Weifang, Shandong are 1,800 RMB/ton and 1,850 RMB/ton. The mainstream prices of secondary and quasi-primary metallurgical coke in Taiyuan, Shanxi Province are 1,700 RMB/ton and 1,750 RMB/ton; the mainstream prices of secondary and quasi-primary metallurgical coke in Mudanjiang, Heilongjiang Province are 1,790 RMB/ton and 1,850 RMB/ton; in Shenyang, Liaoning Province are 1,820 RMB/ton and 1,880 RMB/ton. The mainstream prices of secondary and quasi-primary metallurgical coke in Pingdingshan, Henan Province are 1,810 RMB/ton and 1,900 RMB/ton respectively. The mainstream prices of secondary and quasi-primary metallurgical coke in Tangshan, Hebei Province are 1,790 RMB/ton and 1,840 RMB/ton; in Tianjin are 1,800 RMB/ton and 1,900 RMB/ton. The mainstream prices of secondary metallurgical coke in Panzhihua coke market in Sichuan Province, Liupanshui coke market of Guizhou province and Ordos coke market are 2,030 RMB/ton, 2,230 RMB/ton and 1,500 RMB/ton respectively. The price of primary metallurgical coke in port trade is about 2,050 RMB/ton, of quasi-primary is about 1,950 RMB/ton, and of secondary is about 1,850 RMB/ton.

Products: at present, the overall weakness of the domestic spot market of coke and coke is stable, and the market operators are mostly on the wait-and-see attitude. Coke enterprises are basically the same as the previous stage, and the downstream steel plants are still cautious in purchasing. The enthusiasm of traders is not high, the overall purchasing capacity is insufficient, and the inventory of coke enterprises has increased slightly. In the downstream, the deal of steel plants has not improved significantly, but the steel price has increased slightly. With the steel market entering the off-season, the overall market demand will gradually weaken. In addition, the coke inventory of steel plants remains high, so the steel purchase is mainly rigid, and some manufacturers have control over the arrival of goods.

Industry: according to the price monitoring of SunSirs, there were three kinds of commodities in the rise and fall list of bulk commodity prices on October 30, 2019. The top 3 commodities were LNG (1.32%), methanol (0.74%) and Brent crude oil (0.03%). There were seven kinds of commodities with a month on month decline, and the top 3 products were liquefied gas (- 2.29%), dimethyl ether (- 1.41%) and MTBE (- 1.23%).

2. Market Forecast

According to the coke analysts of SunSirs, at present, the domestic coke market is in full supply. After entering the winter, the coke and steel industry has limited production, but at present, the expectation of limited production of the steel plant is greater than that of the coke enterprise, and the steel plant purchases on demand; because the long-term coke price remains low, the profit space of the coke enterprise is insufficient, and there is strong resistance to further increase and decrease. It has been predicted that the coke market will be weak and stable in the near future. In the future, it is necessary to pay attention to the policy and steel plant inventory.

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