According to the Commodity Market Analysis System of SunSirs, from July 28 to August 4, 2023, the fourth round of increase in the coke market was implemented. As of August 4, the price of quasi first-class metallurgical coke in Shanxi region was 2,080 RMB/ton, an increase of 10.74%.

In terms of supply: The coking coal market has been operating strongly recently, and the purchasing enthusiasm for coke is still good after four rounds of rising prices have been implemented. The auction situation has performed well recently, with almost no online auctions and auction prices constantly rising.

During this cycle, the coke market has been rising for two consecutive rounds, and so far, four rounds have been implemented, with a cumulative increase of 300-340 RMB/ton. Under the influence of two rounds of rising prices, coking enterprises are currently experiencing an improvement in profits. This week, the operating rate has slightly increased, coking enterprises have slightly increased production, and coke supply has slightly increased. In terms of demand, downstream steel mills have resumed construction, and there is currently a good demand for coke replenishment. Overall, the current demand for coke is still moderate and the supply is still slightly tight. However, the decline in futures trading has affected the mentality of the spot market, and traders have slightly lower enthusiasm for buying goods. After two rounds of intensive increase in coke, steel mills have a strong resistance mentality, and it is expected that the coke market will remain temporarily stable in the short term.

The coke market in Shandong port rose first and then fell. As of the 4th, the quasi first level ex-warehouse price of the port was around 2,120-2,150 RMB/ton, and the first level ex-warehouse price was 2,220-2,250 RMB/ton. The port market slightly decreased, and there was little change in inventory between the two ports. The intention to gather ports has recovered, and the market atmosphere has slightly improved.

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, and the enthusiasm of traders to gather at the port has slightly recovered. The futures market has declined, and there is a strong wait-and-see atmosphere in the market.

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