According to the Commodity Market Analysis System of SunSirs, in August 2023, the coke market experienced a series of ups and downs, and as of the time of publication, the price of quasi first-class metallurgical coke in Shanxi Province remained unchanged at 1,980 RMB/ton.

In terms of supply: The coking coal market has overall declined this month. Recently, with the resumption of production in mining areas, the production of coking coal has slightly increased. The purchasing enthusiasm of coking enterprises is average, and under the mentality of buying up rather than buying down, the market trading is relatively cold and the inventory in mining areas has increased, and the market is operating weakly.

In August, the coke market experienced a round of increase at the beginning of the month and a round of decrease at the end of the month, both ranging from 100 to 110 RMB/ton. Prices remained stable throughout the month. At the beginning of the month, boosted by the rising prices of coking coal, the fourth round of increase in the coke market fell to ground. Subsequently, the coke market began its fifth round of upward movement, but downstream steel mills performed mediocrely. Under the influence of costs, steel mills showed strong resistance to upward movement, and the fifth round of upward movement did not materialize. With the impact of factors such as lower finished product prices, steel mills have started the first round of reduction due to profit considerations, but the difficulty of implementation is relatively high. As of the deadline for publication, the coke steel game is still ongoing. In terms of supply and demand, coking enterprises have recently had lower furnace entry costs, and their profit recovery and operating rate have slightly rebounded, resulting in better coke supply. In terms of demand, the steel mills have recently started construction with a relatively high overall demand, and they maintain on-demand procurement for coke. The demand for coke is still in demand. Overall, the raw material prices have decreased, and the support of coke companies has weakened. The supply of coke has been slightly relaxed, and downstream demand for procurement has been maintained. The overall market atmosphere is weak, and it is expected that the coke market will remain weak in the short term. In the future, the focus will be on the implementation of coarse steel level control policies.

The price of coke in the Shandong port market rose first and then fell this month. The quasi first level ex-warehouse price of the port is around 2,080-2,120 RMB/ton, and the first level ex-warehouse price is 2,180-2,220 RMB/ton. The port market is operating weakly, with low intention to gather, a slight decrease in inventory between the two ports, and actual market transactions are relatively low. In terms of shipping cost, it will be 190 RMB/ton from Xiaoyi to Rizhao Port on the 29th, and 160 RMB/ton from Jiexiu to Rizhao Port. In terms of inventory, the overall decline in port inventory during the month was observed, with a decrease of 120,000 tons in Rizhao Port and a decrease of 200,000 tons in Qingdao Port

Freight is a barometer that reflects the mindset of the port market. When the port procurement mindset is positive, freight increases. Port mentality is wait-and-see, and freight prices decline when purchasing intentions are low. This month, port freight prices rose first and then fell, and by the end of August, the port had a wait-and-see mentality.

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