SunSirs: China Coke Market is currently Stable (January 12-19)

According to the commodity market analysis system of SunSirs, from January 12 to January 19, 2024, the coke market in Shanxi region temporarily remained stable, with the ex factory price of quasi primary metallurgical coke on January 19 being 2,226.67 RMB/ton, unchanged.

In terms of supply: The coking coal market has been operating weakly recently, and the mining areas near the holiday have basically completed the production tasks within the year. Recently, they have taken the initiative to limit production, and the overall supply of coking coal is tight. Downstream coking enterprises have a weak mentality, and there are plans to replenish inventory near the holiday. Currently, they are relatively active in entering the market.

The market atmosphere in the coke market remained weak last week. With the implementation of two rounds of price cuts, coke companies are currently losing money, and there are more companies actively limiting production. The operating rate has slightly declined, and the weak and stable operation of the coke coal market has led to a generally weak mentality among coke companies. In terms of demand, the performance of the finished product market is weak, and steel mills are losing money by controlling the purchase of coke, resulting in less active entry into the market. Overall, the finished product market has entered the off-season, and coke steel enterprises generally have a weak mentality due to the lack of downstream demand support. Downstream demand replenishment and accumulation of coke inventory are expected to result in a weak operation of the coke market in the short term, compounded by market bearish factors.

The coke market in Shandong Port is currently operating steadily, with a quasi first level outbound price of around 2,270-2,320 RMB/ton and a first level outbound price of 2,370-2,420 RMB/ton. The port market is operating weakly, with a weak intention to gather at the port and a slight decline in inventory at both ports. Actual market transactions are still relatively low.

Freight prices are a barometer of port mentality. Market sentiment is positive when freight prices rise, but weak when freight prices fall. Last week, port inventory increased, and the enthusiasm of traders to gather at ports remained low, resulting in a slight increase in port freight prices.

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