From October 1 to 9, 2022, the first round of increase in the coke market was implemented. As of October 9, the price of quasi primary metallurgical coke in Shanxi was 2,600 RMB/ ton, and the price before the festival was 2,500 RMB/ ton, up 4%.
In terms of supply: at present, the market price of coking coal is temporarily stable. Recently, there has been a lot of production reduction in coal mines. The shipment in the main production area has been affected to some extent. Most downstream coke enterprises purchase on demand, and the market sentiment has fallen back to a certain extent. Most of them are long-term customers.
During the short and long holidays, the coke market rose for the first round, and this round increased by 100-110 RMB/ ton. After the festival, the coke market is mainly stable. In terms of supply, the profits of coking enterprises have been damaged recently, and the overall commencement is low. Some enterprises have taken the initiative to limit production. The price in Shanxi, the main production area, is temporarily stable. At present, the local transportation is affected to some extent, but the impact on production is not significant temporarily. The coke inventory in the plant remains low, and the downstream is still actively purchasing. In terms of downstream demand, the recent commencement of steel plants has maintained a high level of stability, the overall demand for coke is relatively stable, and the coke demand is still there. In the future market, the sales of finished products have improved to a certain extent, the demand for coke procurement is still good, and the mentality of coking enterprises is strong. It is expected that the coke market will operate stably, moderately and strongly in the short term. The future market will focus on the impact of transportation and the profit of coke steel enterprises on coke prices.
During the holiday, the market price of coke at Shandong ports rose as a whole, and the quasi primary ex warehouse price of the port rose from 2,700 RMB/ ton on the first day to 2,775 RMB/ ton on the ninth day, up 75 RMB/ ton. However, the overall port inventory declined, Rizhao declined by 40,000 tons, and Qingdao remained unchanged. As of September 9, the quasi first level ex warehouse price of Shandong port was about 2,750-2,800 RMB/ ton, and the first level ex warehouse price was 2,850-2,900 RMB/ ton. After the first round of increase, the closing price rose by 100 RMB/ ton. The overall port market is relatively strong, the port inventory continues to decline slightly, the market supply is relatively small, and the market atmosphere is wait-and-see.
During the long holiday, the port freight rate rose as a whole, with a slight increase of 5-10 RMB/ ton in the freight rates of the two ports. Due to the obvious upside down of the port gathering cost, the port traders' situation of port gathering was general, and the port inventory did not change much.
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