SunSirs: The Second Round of Increase in China Coke Market operated from July 7 to July 14

According to the commodity market analysis system of SunSirs, the coke market temporarily remained stable from July 7 to July 14, 2023. As of July 14, the price of quasi first grade metallurgical coke in Shanxi region remained unchanged at 1,796 RMB/ton.

In terms of supply: The recent strong operation of the coking coal market has led to the first round of increase in prices for coking enterprises. Currently, production in the mining area is relatively normal, and the shipment situation is good, providing good support for coke costs.

Last week, the coke market temporarily stabilized operation, with a second round of increase starting, with an increase of 50-60 RMB/ton. In terms of supply, coke companies have recently experienced a slight decline in construction, with a slightly tight supply of coke. Low inventory operations are generally maintained in factories, and the price of coke has increased. Coke companies have a strong mentality of supporting prices. In terms of demand, downstream steel mills have seen an improvement in demand, with a slight increase in blast furnace operating rates recently, and are actively purchasing coke. Overall, the recent performance of the coke market is characterized by tight supply and strong demand, and it is expected that the operation will be mainly strong in the short term.

The price of coke in the Shandong port market has slightly increased, with the quasi first level ex-warehouse price at around 1,950-2,000 RMB/ton and the first level ex-warehouse price at 2,050-2,100 RMB/ton. The port market atmosphere has slightly improved, and there has been little change in inventory between the two ports. The second round of increase has started, and market negotiations are slightly quiet, with a focus on wait-and-see. In terms of freight, 180 RMB/ton will be paid from Xiaoyi to Port of Rizhao on July 14th, and 175 RMB/ton will be paid to Port of Rizhao on an interim basis.

Freight prices are a barometer of port mentality, with a positive market attitude towards upward freight prices and a weak market attitude towards downward freight prices. There has been little change in port inventory this week, and the enthusiasm of traders to gather at the port has been low. There is a strong wait-and-see atmosphere, and the market atmosphere has slightly improved due to the impact of the second round of rising prices.

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