Price trend
According to the Commodity Analysis System of SunSirs, coking coal prices were weak this week. At the beginning of the week, the average market price was 2,205 RMB/ton, while on the weekend, the average market price was 2,171.67 RMB/ton. The price decreased by 1.51%, and the price decreased by 33.35% compared to the same period last year.
On April 20th, the energy index stood at 1,045 points, a decrease of 5 points from the previous day, a decrease of 33.06% from the highest point of 1,561 points in the cycle (2021-10-21), and an increase of 104.50% from the lowest point of 511 points on March 1st, 2016. (Note: The cycle refers to the period from December 1st, 2011 to the present)
Analysis review
In terms of origin, coal mining operations maintained a normal level, and downstream purchases were more on demand. Some regions had a certain inventory backlog, and online transactions were also slightly sluggish. The market had a strong sense of pessimism, mostly in a wait-and-see state, with tight interests and domestic coking coal prices were mainly weak. During this cycle, the coke market remained weak, with the third round of price reductions fully implemented within the week. As of the 21st, a cumulative price reduction of 200 to 300 RMB/ton had been achieved. After three rounds of price reductions, the market remained weak. Demand release was slow, and more coking coal was purchased on demand.
Market outlook
From the perspective of coking coal analysts of SunSirs, coking coal maintained normal production, and the demand for coking coal in the downstream coke sector was average recently. The market sentiment was on the sidelines, and the demand was relatively low. The market price was mainly weak. From a comprehensive perspective, the coking coal prices will be mainly operating weakly, with specific reference to downstream market demand.
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