According to the commodity market analysis system of SunSirs, in November 2023, the coke market saw a total of two rounds of increase. As of the time of publication, the price of quasi first grade metallurgical coke in Shanxi region was 2,328.33 RMB/ton, up 9.57%.
In terms of supply, the coking coal market saw an overall upward trend in November. In terms of supply, the mining area started production relatively low during the month. Due to comprehensive factors such as safety and environmental protection, the recent production has slightly declined, and the overall supply is tight. In terms of demand, the coke market has been continuously rising for two rounds. Currently, the profits of coke companies have recovered, and the demand for coking coal procurement is still good, especially for high-quality coke. Currently, the overall inventory of mining areas is low, and the market mentality is positive.
According to the commodity market analysis system of SunSirs, the coke market experienced two rounds of price increases in November 2023, with a cumulative increase of 200-220 RMB/ton. The trend remained stable in the first half of the month, with two rounds of upward momentum in the second half. In the first half of the month, coke companies had a positive attitude, with rising prices of raw materials and coal. The cost pressure on coke companies increased, and downstream demand was biased towards rigid demand. In early November, coke companies began their first round of price hikes, and the coke steel game lasted for about a week before the first round of price hikes landed. By the end of the month, the price of coking coal continued to rise, and the cost pressure on coking enterprises increased. Traders actively entered the market to purchase, and the inventory in coking enterprises was generally low. With the overall tight supply of limited production coke in some regions, coking enterprises had a strong upward pressure. In terms of demand, downstream steel mills generally have low coke inventories and are actively replenishing inventory. There is a good demand for coke, and the tight supply combined with improved demand has led to a second round of rising prices in the coke market. Overall, coke companies have a strong reluctance to sell, and the overall supply of coke is tight. Downstream active entry into the market is expected to result in a strong operation of the coke market in the short term.
The coke market in Shandong Port is currently operating steadily, with a quasi first level outbound price of around 2,400-2,450 RMB/ton and a first level outbound price of 2,500-2,550 RMB/ton. The port market is operating strongly, and the intention to gather ports is still acceptable. The inventory of the two ports continues to rise, and the market trading atmosphere is still acceptable. As of the 29th, it will cost 210 RMB/ton from Xiaoyi to Rizhao Port, and 200 RMB/ton from Jiexiu to Rizhao Port.
Freight is a barometer that reflects the mentality of the port market. When the port procurement mentality is positive, freight increases. Port mentality is wait-and-see, and freight prices decline when purchasing intentions are low. This month, the port freight prices have first increased and then decreased, and the current intention of port consolidation is still acceptable.
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