SunSirs: China Coke Price Rose to a New High in the Year on May 20

On May 19, coking enterprises implemented the eighth round of price increase. According to the price monitoring of SunSirs, on May 20, the price of grade II metallurgical coke in Shanxi was 2,720 RMB/ ton, which has reached a new high in the year.

The price of upstream coking coal has risen to the highest point since 2008, and the purchasing enthusiasm of coking enterprises has declined. At present, the production of coking enterprises is active, although the utilization rate of production capacity has increased to a certain extent, the impact of environmental protection and production restriction still exists in Shanxi, and the overall improvement of coke production is limited. The demand for replenishment of downstream steel plants still exists, which has a certain support for coke price. However, in recent years, Tangshan area has reduced emissions, the operating rate of steel plants has declined, and the coke inventory of steel plants has improved to a certain extent. At present, the price of coke has reached a new high in the year, the market fear of heights is frequent, the superimposed futures market continues to perform poorly, the traders' receiving intention is low, and the overall shipping mood is high.

Yesterday, the coke market of the two ports in Shandong is relatively strong. At present, the mainstream spot ex-warehouse price of quasi first-class metallurgical coke in the port area is about 2,730 RMB/ ton, and the price of first-class coke is 2,830 RMB/ ton. The inventory of the two ports decreased, the situation of gathering in Hong Kong was limited, and the traders had a strong shipping mentality.

In the future, SunSirs analysts believe that the current market price fear is strong, and price increase is limited. With the support of downstream demand, it is expected that the coke price will be stable and strong in the short term.

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