According to the Commodity Market Analysis System of SunSirs, the fifth round of increase in the coke market was launched from August 4 to August 11, 2023. As of the deadline for publication, it has not yet been implemented. On August 11, the price of quasi first-class metallurgical coke in Shanxi region was at 2,080 RMB/ton, which remained unchanged.
In terms of supply: Last week, the domestic coking coal market temporarily stabilized, with downstream purchases being more on demand, and mining areas actively shipping. In the future, coking coal supply is tight, and it is expected that coking coal prices will continue to trend towards high consolidation.
During this cycle, the coke market has started its fifth round of intensive increase, and the gaming mentality of coke steel is relatively heavy. As of the deadline for publication, it has not yet been implemented, and this round of increase is 100 to 110 RMB/ton. After four consecutive rounds of rising and landing, the profits of coking enterprises have slightly recovered. Last week, the operating rate of coking enterprises slightly rebounded, and the inventory in the factory is still at a low level, with good sales performance. Downstream steel mills have recently experienced weak finished product prices, poor profits, and a slight slowdown in coke procurement. However, there is still a demand for rigid replenishment, which can provide sufficient support for coke demand. In the future market, Jiaogang currently has a strong gaming mentality, and the difficulty of raising prices in the fifth round is relatively high. It is expected that the overall market will be stable and strong, with a focus on the trend of finished product prices and the operation of steel mills in the future.
The price of coke in the Shandong port market fluctuates within a narrow range. As of the 11th, the quasi first level ex-warehouse price of the port was around 2,050-2,130 RMB/ton, and the first level ex-warehouse price was 2,150-2,230 RMB/ton. The port market is temporarily stable, with inventory at the two ports slightly increasing, and overall market transactions are weak, with a wait-and-see atmosphere.
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. This week, there was a slight decline in port inventory, with weak enthusiasm from traders to gather at the port, and a slight decline in freight prices, resulting in a strong wait-and-see atmosphere in the market.
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