According to the Commodity Market Analysis System of SunSirs, from June 30 to July 7, 2023, the first round of increase in the coke market was implemented. As of July 7, the price of quasi first-class metallurgical coke in Shanxi region was 1,796 RMB/ton, up 2.39%.

In terms of supply: Recently, the coking coal market has been relatively strong, and coking enterprises have raised prices for the first time. Currently, production in the mining area is relatively normal, and the shipment situation is good. Near cost support is good.

In terms of cost, the price of coking coal has steadily increased, providing some cost support for coke. In terms of supply, the operating rate of coke enterprises in the main production area is slightly low, and the inventory in the factory is running low, resulting in a slight shortage of supply. In terms of downstream demand, the steel industry has entered a seasonal off-season, but there is still a strong demand for coke procurement. Due to the previous 10 consecutive rounds of decline in coke, which has now fallen to the lowest level in the same period in nearly 5 years, coke companies have generally suffered losses. With the support of higher coke coal prices and tight supply, the first round of increase in coke on July 7th finally came to fruition after two weeks of gaming. The price of coke will be increased by 50 RMB/ton for wet quenching and 60 RMB/ton for dry quenching. In the future, coke companies have a strong bullish sentiment, and SunSirs predicts that the coke market will remain stable and strong in the short term. In the future, it will focus on the procurement situation of downstream steel mills.

The price of coke in the Shandong port market has slightly increased, with the quasi first level ex-warehouse price at around 1,920-1,960 RMB/ton and the first level ex-warehouse price at 2,020-2,060 RMB/ton. The port market atmosphere has slightly improved due to the news of the first round of increase, and there has been little change in port inventory. The market has a strong wait-and-see atmosphere, and actual market transactions are limited.

Freight prices are a barometer of port mentality, with a positive market attitude towards upward freight prices and a weak market attitude towards downward freight prices. There has been little change in port inventory this week, with low enthusiasm among traders to gather at the port and a strong wait-and-see atmosphere. Freight prices have slightly decreased.

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