According to the Commodity Market Analysis System of SunSirs, in September 2023, the coke market experienced a round of increase, and as of the time of publication, the price of quasi first-class metallurgical coke in Shanxi region was 2,096.67 RMB/ton, an increase of 5.89%.

In terms of supply: The coking coal market has seen a significant increase this month, with frequent mining accidents at the supply end. Due to safety inspections, the operating rate has declined, and the supply of coking coal has been tight due to the release of pre holiday replenishment demand. In terms of transaction, the bidding situation within the month was good, with some coal types experiencing significant premiums, and the price of coking coal continued to rise. The increase in raw material prices has led to higher costs for coking enterprises to enter the furnace, and currently, coking enterprises have a strong mentality of price support.

According to the Commodity Market Analysis System of SunSirs, in September 2023, the coke market experienced a round of increase, and as of the time of publication, the price of quasi first-class metallurgical coke in Shanxi region was 2,096.67 RMB/ton, an increase of 5.89%. The coke market experienced a round of increase in late September, and remained temporarily stable in mid to early September. This round of increase was 100 to 110 RMB/ton. At the beginning of the month, the coke market price was temporarily stable, and the spot market sentiment was good, with the overall market operating stronger. In terms of supply, coke companies generally maintained a high level of construction in the early stage, but with the rising prices of raw coking coal, some companies have expectations of reducing production. As market sentiment heats up, there are more downstream purchases entering the market, and the market trading atmosphere is good. The inventory of coke in the factory is low, and some companies are reluctant to sell, resulting in a slightly tight supply. The mentality of coke companies is strong. In terms of demand, the overall operation of steel mills has been relatively good recently, while the overall operation of blast furnaces is relatively high. The demand for coke is still acceptable, while downstream demand is actively on the high side. Currently, the coke inventory of steel mills is relatively stable, and replenishment is mainly based on demand.

At the end of the month, the raw material of coking coal continued to rise, causing high costs for coke companies to enter the furnace. Some companies suffered losses, and the overall operating rate decreased. The supply of coke was slightly tight. With the first round of increase and landing, the profit situation of some enterprises has improved, but the price of coking coal is still rising, and the cost pressure of coking enterprises still exists. There are still expectations of a decrease in operating rates in the future, and the supply of coke is expected to be tight. In terms of demand, the steel plant started construction well this week. As the holiday approaches, some downstream enterprises still have stock demand, and the demand for coke has performed well. Coking enterprises have launched a second round of increase of 100-110 RMB/ton, and the range of increase has rapidly expanded as coking coal prices do not count as rising. Overall, at the end of the month, the supply of coke was tight and the demand was good. The mentality of coke companies was relatively strong, and it is expected that the coke market will mainly operate with a strong trend. Focus on the price trend of coking coal and the changes in inventory in steel mills and coking enterprises.

The price of coke in the Shandong port market has risen, with the quasi first level ex-warehouse price at around 2,270-2,350 RMB/ton and the first level ex-warehouse price at 2,370-2,450 RMB/ton. The port market is relatively strong, with inventory in both ports slightly increasing. Downstream inquiries have improved compared to the previous period, and the overall trading performance of the market is still good. The scope of the second round of increase in the spot market has expanded, with an increase of 100-110 RMB/ton in this round.

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 have continued to rise, and the sentiment of port consolidation has gradually increased.

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