SunSirs: China Coke Market has a Surge in December 2023

According to the commodity market analysis system of SunSirs, the coke market saw a total increase of one round in December 2023. As of the time of publication, the price of quasi first-class metallurgical coke in Shanxi region was 2,430 RMB/ton, up 4.37%.

In terms of supply: The coking coal market saw an overall upward trend in early December, followed by high consolidation in mid December. At the end of the month, due to the influence of environmental protection and safety supervision in various regions, many coal mines started operating at a low rate, and some mining areas entered year-end maintenance. The overall supply of coking coal in the market was tight. Downstream on-demand procurement, overall rigid demand support still exists.

According to the commodity market analysis system of SunSirs, the coke market experienced a round of upward trend in December 2023, with a cumulative increase of 100-110 RMB/ton. In mid month, Jiaoqi started its fourth round of price hikes, and as of the time of publication, it has not yet been implemented. At the beginning of the month, due to the high prices of raw materials, coke companies still maintained production restrictions. In the first half of the month, the operating rate slightly decreased, and the overall supply of coke was tight. In terms of demand, the transportation of coke was slightly affected by the weather, and downstream steel mills had a demand for replenishment. They actively purchased and had a good demand for coke. Supported by favorable supply and demand, the third round of coke price increase has landed. By the end of the month, as the operating rate of coke enterprises rebounded, the supply of coke was relatively loose compared to the previous period, and some downstream enterprises underwent maintenance, leading to a decrease in their enthusiasm for coke procurement and a decline in market sentiment. The fourth round of price hikes was basically stalled. Overall, the downstream procurement enthusiasm has slowed down, and the supply of coke is slightly loose. It is expected that the coke market will maintain a temporary stable operation in the short term. In the future, the focus will be on the price trend of coke coal and the inventory situation of coke in various links.

The coke market in Shandong Port is currently operating steadily, with a quasi first level outbound price of around 2,400-2,450 RMB/ton and a first level outbound price of 2,500-2,550 RMB/ton. The port market is currently operating steadily, with slightly light market trading and a wait-and-see attitude among traders, resulting in a weak market atmosphere.

Freight is a barometer that reflects the mentality of the port market. When the port procurement mentality is positive, freight increases. Port mentality is wait-and-see, and freight prices decline when purchasing intentions are low. This month, the port freight prices have first fallen and then increased, and the current intention of port consolidation is still acceptable.

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