SunSirs: The First Round of Coke Price Reduction has been Implemented in China (December 29, 2023 to January 5, 2024)
January 08 2024 09:56:59     SunSirs (Selena)According to the commodity market analysis system of SunSirs, from December 29 to January 5, 2023, the first round of price increase and decrease in the coke market in Shanxi region was implemented. On January 5, the ex factory price of quasi first level metallurgical coke was 2,328.33 RMB/ton, a decrease of 1.18%.
In terms of supply: The coking coal market is operating weakly, and the supply is slightly tight in some regions due to environmental protection and safety production. Recently, downstream coking enterprises have had a slightly lower purchasing enthusiasm, with an increase in online auctions and a decline in the transaction prices of some coal types. The downstream price pressure mentality is becoming stronger, and the market sentiment is weakening compared to the previous period, mainly to maintain demand and replenish inventory.
Last week, the overall coke market was weak, with the first round of coke price reduction implemented within the week. This round of coke price reduction is 100-110 RMB/ton. With the implementation of the first round of price cuts, the profitability of coke companies has once again declined. However, due to the continuous decline in raw material coking coal prices in recent times, the cost of entering the furnace for coke companies decreased, and the overall performance of operation is still good, maintaining around 75% last week, slightly recovering from the previous week. In terms of demand, the downstream finished product market has basically entered a seasonal off-season. With the end of winter storage in steel mills, the enthusiasm for downstream procurement is currently slightly low, and the overall situation remains to replenish inventory according to demand, with support for rigid demand still remaining. In the future, downstream demand is weak, and the atmosphere of the coke market has weakened. In the short term, the coke market will continue to operate weakly, with a focus on the price trend of coking coal in the future.
The price of coke in the Shandong port market is temporarily stable, and the market atmosphere is still weak. The quasi first level outbound price at the port is around 2,350-2,450 RMB/ton, and the first level outbound price is 2,450-2,550 RMB/ton. The port market is operating weakly, and the market's intention to gather ports is weak. Downstream market inquiries are slightly lukewarm.
Freight prices are a barometer of port mentality. Market sentiment is positive when freight prices rise, but weak when freight prices fall. This week, the overall inventory at the port has declined, and the enthusiasm of traders to gather at the port has been low, resulting in a decrease in port freight prices.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.
- 2024-04-22 SunSirs: The First Round of Price Increase in China Coke Market has Landed, and the Second Round of Price Increase has Begun (April 12-19)
- 2024-04-15 SunSirs: The Eighth Round of Price Rise and Fall in China Coke Market Implemented (April 7-12)
- 2024-04-08 SunSirs: The Coke Market is Weak (April 1-7)
- 2024-03-29 SunSirs: Two Rounds of Increase and Decrease in China Coke Market in March 2024
- 2024-03-25 SunSirs: The Sixth Round of Price Reduction in China Coke Market has been Implemented (March 15-22)