SunSirs: Energy, China Domestic Coke Market is Expected to Rremain Strong after Continuous Expansion

1. Trend Analysis

Price: according to the data monitoring of SunSirs, after the second round of increase of 50 RMB/ton, the domestic coke market is stable and strong. At present, the mainstream prices of secondary and quasi-primary metallurgical coke in Shanghai are 1,880 RMB/ton and 1,950 RMB/ton respectively; in Xuzhou are 1,850 RMB/ton and 1,920 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, 2,270 RMB/ton and 1,450 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: influenced by environmental protection, production restriction and capacity reduction, the supply of domestic coke spot market has declined, the market mentality is more optimistic, some coke prices are reluctant to sell; in the downstream, the recent demand of steel mills is stable, some steel mills have the demand for replenishment, and the rest are mainly rigid, which supports the coke price stably.

Industry: according to the price monitoring of SunSirs, on December 9, 2019, there were seven commodities in the list of commodity prices rising and falling, among which Brent crude oil (1.58%), petroleum coke (1.36%) and WTI crude oil (1.32%) were the top 3 commodities. There were two kinds of commodities falling on a month on month basis, the first two products falling were LNG (- 4.28%) and fuel oil (- 0.18%). The daily average was up or down 0.15%.

1. Market forecast

According to the coke analysts of SunSirs, the domestic coke market is relatively stable and strong at present, and some steel mills have accepted the increase of coke price. With the production restriction of the coke market and the process of replenishment of steel mills, the coke market is expected to be stable and positive in the short term.

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