SunSirs: The Third Round of Increase in China Coke Market during October 7-13

According to the commodity market analysis system of SunSirs, the coke market temporarily stabilized from October 7 to October 13, 2023. On October 13, the ex factory price of quasi first-class metallurgical coke in Shanxi region was 2,196.67 RMB/ton, which remained unchanged.

In terms of supply: The coking coal market has been operating steadily at a high level recently, while in terms of supply, the production in the mining area has been relatively normal recently. The coal mines that were shut down in the early stage have started to slowly resume work, but it will still take time to recover, so the supply of coking coal is still slightly tight. In terms of demand, the pace of replenishment for coking enterprises has slowed down due to the impact of profits, leading to a weakening market mentality and a strong wait-and-see sentiment among traders.

This week, the coke market has temporarily stabilized operation, with the supply side of coking coal market prices showing a high trend in recent times. The cost of coking enterprises entering the furnace is relatively high, coupled with production restriction plans in some regions. Recently, coking enterprises have slightly declined in operation, and inventory in coking enterprises is generally low. The mentality of coking enterprises is relatively strong. During the week, coking enterprises in the main production area started the third round of increase of 100-110 RMB/ton, and as of the time of publication, downstream steel mills have not responded yet. In terms of demand, downstream steel mills have slightly reduced their production, while maintaining just in demand procurement for coke. Overall, the current steel mills have low profits, poor acceptance of price increases, and a strong gaming mentality towards coke steel. It is expected that the coke market will temporarily stabilize in the short term, with a focus on the price trend of coke coal and the sales of finished products in the future.

The price of coke in the Shandong port market is temporarily stable. As of the 13th, the quasi first level ex-warehouse price of the port is around 2,250-2,320 RMB/ton, and the first level ex-warehouse price is 2,350-2,420 RMB/ton. The port market is currently operating steadily, and the inventory of the two ports has slightly increased. The market trading atmosphere is average.

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. This week, there has been little fluctuation in port inventory, with weaker enthusiasm from traders to gather at the port. Freight prices have fallen, and the market atmosphere is on the wait-and-see side. Actual transactions are still weak.

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