SunSirs: Coking Coal Prices Declined Overall in May

Price trend

According to the analysis system of SunSirs, the overall price of coking coal decreased in May. At the beginning of the month, the average market price was around 2,088.33 RMB/ton, and at the end of the month, the average market price was 1,701.67 RMB/ton. The price decreased by 18.52%, and the price decreased by 40.4% compared to the same period last year.

On May 30th, the energy index stood at 924 points, a decrease of 3 points from the previous day, a decrease of 40.81% from the cycle's highest point of 1,561 points (2021-10-21), and an increase of 80.82% from the lowest point of 511 points on March 1st, 2016. (Note: The cycle refers to the period from December 1st, 2011 to the present)

Analysis review

According to the Commodity Market Analysis System of SunSirs, the overall coking coal market declined this month. In terms of production location, the coal mine maintained normal operation, and sales had improved compared to the previous period. Some enterprises had improved in inventory reduction, but downstream enterprises mostly maintained low inventory. In terms of downstream coke, there were a total of 5 rounds of decrease in the coke market in May, with a cumulative decrease of 400 RMB/ton. After the implementation of the ninth round of increase and decrease, the profits of coking enterprises had generally declined, but the operating rate of enterprises had remained at around 74%. The overall atmosphere of the coke market was weak, and it is expected to remain weaker in the short term.

Market outlook

According to the coking coal analyst of SunSirs, coking coal maintained normal production, but the demand for coking coal in downstream coke was still mainly based on on-demand procurement. The profit of coking enterprises has reached a loss state. Overall, the price of coking coal is mainly weak, and the specific situation depends on the demand in downstream markets.

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