SunSirs: Coke Price Was Temporarily Stable (February 3- 10)

Price trend

From February 3 to February 10, 2023, the coke market was temporarily stable. As of February 3, the price of quasi-class metallurgical coke in Shanxi was at 2,482 RMB/ton, which was flat.

Analysis review

In terms of supply: production in the mining area had basically returned to normal after the holiday, and the recent coking coal output increased to a certain extent. Recently, the profits of coking enterprises were damaged, and raw materials were purchased as required, so the inventory in the mining area had increased slightly recently.

The coke market continued to operate stable temporarily this week. In terms of supply, coking enterprises were affected by profits, and the recent operating rate was basically the same as that of the previous period. The recent sales situation had slowed down slightly. Downstream steel plants purchased as required, and the coke inventory in the plant had accumulated to a certain extent. In terms of demand, the steel price did not perform well after the holiday, and the steel mills' purchase intention slightly decreased, and most of them maintained the purchase on demand.

This week, the coke price of ports in Shandong fell back. As of February 7, the quasi-first level ex-warehouse price of ports was about 2,670-2,700 RMB/ton, and the first-level ex-warehouse price was 2,770-2,800 RMB/ton. The port market was temporarily stable, the market wait-and-see atmosphere was gradually rising, the activity was slightly reduced, and the recovery of port collection was relatively general.

This week, the port freight had been temporarily stable and partially declined, the port inventory fluctuated in a narrow range, and the enthusiasm of traders to gather at the port was weak, leading to a small drop in the freight price. As of 10th, the port mentality was weak as a whole, and the wait-and-see atmosphere was strong.

Market outlook

SunSirs believes that the current market atmosphere is generally weak, and it is expected that the price will be stable and weak. In the future, focus on the coke inventory in each link, the sales of downstream steel plants and the price trend of raw materials.

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