SunSirs: The Eighth Round of Price Rise and Fall in China Coke Market Implemented (April 7-12)

According to the commodity market analysis system of SunSirs, from April 7th to April 12th, 2024, the eighth round of increase and decrease in the coke market in Shanxi region was implemented. As of April 12th, the ex factory price of quasi first grade metallurgical coke was 1,668.33 RMB/ton, a decrease of 4.85%.

Coking coal: The coking coal market is still operating weakly this week, with stable mining operations and stable supply of coking coal. After the implementation of the eight rounds of coke price reduction, the profits of coke companies are relatively low, and they only maintain on-demand replenishment of raw coking coal, resulting in overall weak demand. This week's online bidding has seen mixed gains and losses, but the overall volatility is limited. Some coal prices have rebounded, and the market atmosphere has slightly improved.

The coke market is operating weakly, with the eighth round of price cuts this week quickly landing, with a cumulative price drop of 800-880 RMB/ton, indicating a weak mentality among coke companies. In terms of supply, due to the impact of profits from coking enterprises, the current production restriction is still relatively high, and the operating rate of coking enterprises continues to decline, currently around 60%. Most coking enterprises still suffer losses. Due to the weak overall demand in the coal coke steel industry chain, coking enterprises have low expectations for production increase in the short term and will continue to maintain a low operating rate in the near future, resulting in tight supply of coke. In terms of demand, the prices of steel related futures commodities have risen this week, driving up the sentiment in the industrial chain market. The recent transaction situation in the finished product market has improved to some extent, and the expectation of an increase in steel plant operating rates has strengthened, leading to an improvement in market atmosphere. In the future, the port market atmosphere is currently the first to recover, with both market prices and trading atmosphere rebounding. As a result, the mentality of coking enterprises is currently improving, and inventory is mainly shifting to the trading market. It is expected that the coke market will maintain a temporary stable operation in the short term, with a focus on downstream finished product sales and coke inventory in various links in the future.

The coke market in Shandong ports is operating weakly, with a quasi first level outbound price of around 1,800-1,820 RMB/ton and a first level outbound price of 1,900-1,920 RMB/ton. The spot market in ports is operating weakly, and the market atmosphere is slightly improving, but actual trading is still weak.

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