According to the commodity market analysis system of SunSirs, in March 2024, the coke market experienced two rounds of ups and downs. As of the time of publication, the price of quasi first grade metallurgical coke in Shanxi region was 1,821.67 RMB/ton, a decrease of 9.97%.
The coking coal market was generally weak in March, but the overall decline was not as significant as that of coke. In terms of supply, most of the production in the mining area has remained stable, with relatively stable output. In terms of demand, downstream coking enterprises have recently resumed purchasing coking coal, but most of them have maintained a strong demand for replenishment, resulting in weak demand performance.
According to the commodity market analysis system of SunSirs, the sixth round of price reduction in the coke market was implemented in March 2024, with a cumulative decrease of 600-660 RMB/ton, and the seventh round of price reduction of 100-110 RMB/ton was initiated at the end of March. Although the price of coking coal continued to decline during the month, the overall decline was not as significant as that of coking coal. At the end of the month, coking enterprises resumed procurement, and the atmosphere in the coking coal market improved, with the downward trend temporarily stable. Affected by this, coking enterprises still face significant losses. Currently, the operating rate of coking enterprises is still low, and from the current market environment, the possibility of a short-term rebound is relatively small. The supply of coke remains tight in the short term. In terms of demand, the trend of the steel market is still weak, with prices of finished products continuing to fall. Terminal demand is difficult to increase in the short term, and steel mills have low profits. Currently, the operating rate is low, and the demand for coke remains high. In the future, terminal demand is difficult to increase, and the coal coke steel industry chain is operating at a low level. In the future, coke companies may further reduce their operating rates under the influence of profits, and the coke market will maintain a weak trend in the short term.
The coke market in Shandong port is operating weakly, with a quasi first level outbound price of around 1,850-1,900 RMB/ton and a first level outbound price of 1,950-2,000 RMB/ton. The spot market in the port is operating weakly, and traders have average intentions to gather at the port. The inventory of the two ports fluctuates slightly, and market trading is cold. The impact of the seventh round of lifting and lowering in the spot market has led to a relatively cold atmosphere in the port market.
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 overall port freight prices have declined, and currently the overall port trading is weak, with a strong market wait-and-see atmosphere.
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