SunSirs: The Third Rounds of Increase in China Coke Market have not yet been Implemented (December 1-8)

According to the commodity market analysis system of SunSirs, from December 1 to December 8, 2023, the coke market in Shanxi region remained stable for the time being. On December 8, the ex factory price of quasi primary metallurgical coke was 2,328.33 RMB/ton, which was temporarily stable.

In terms of supply: The domestic coking coal market has remained stable last week, with overall low production in mining areas and slightly tight supply. In terms of demand, online bidding has seen a mixed rise and fall in recent times, with some rising and others falling. The overall magnitude is not significant, with some auctions being unsuccessful. The tight supply has boosted the operation of the coking coal market.

The overall performance of the coke market last week is relatively strong, with the third round of price increases starting. However, as of the time of publication, steel mills have not responded, and the third round of price increases has not yet been implemented. The raw material coking coal continues to operate at a relatively strong level. Recently, the cost of entering the furnace for coking enterprises is still high, and the overall profit is poor. Some enterprises have voluntarily limited production, and currently the on-site inventory is operating at a low level, resulting in a slightly tight supply of coke. In terms of demand, as the weather cools down, the downstream terminal consumer market gradually enters the off-season, and the overall performance of finished product sales is weak. However, steel mills generally have winter storage plans in winter, so the demand for coke is still good. In the future, the mentality of coke enterprises remains strong, and downstream demand is still present. It is expected that the coke market will continue to operate strongly in the short term. The focus of the future is on the downstream winter storage plan and the inventory situation of coke in various links.

The coke market price in Shandong Port has increased, with the quasi first level outbound price at around 2,400-2,450 RMB/ton and the first level outbound price at 2,500-2,550 RMB/ton. The port market is operating strongly, and the current market trading atmosphere is light, with a slight increase in inventory between the two ports. The enthusiasm for port consolidation is still acceptable. As of the 8th, the price from Xiaoyi to Rizhao Port is 200 RMB/ton, and the price from Jiexiu to Rizhao Port is 180 RMB/ton.

Freight prices are a barometer of port mentality. Market sentiment is positive when freight prices rise, but weak when freight prices fall. Last week, the overall port inventory has slightly declined, and the enthusiasm of traders to gather at the port has improved, resulting in a slight decrease in freight prices.

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