According to the commodity market analysis system of SunSirs, from March 8th to March 15th, 2024, the fifth round of price increase and decrease in the coke market in Shanxi region was implemented. As of March 15th, the ex factory price of quasi first grade metallurgical coke was 1,923.33 RMB/ton, a decrease of 1.94%.
On the supply side, the coking coal market is operating weakly. Recently, the mining area has maintained stable production and supply, and downstream coking enterprises have been continuously losing money. Due to the impact of profits, their intention to purchase raw coking coal is relatively low. The performance of online auctions is also weak, with some coal types experiencing auction failures and a weak market atmosphere.
The coke market is operating weakly, and after the implementation of the fifth round of price cuts, coke companies continue to increase their production restrictions. This week, the comprehensive operating rate continued to decline. Although the recent decline in raw material coking coal prices has somewhat restored the profits of coking enterprises, most coking enterprises still suffer losses, and production restrictions are still significant. Affected by the weak market atmosphere, coking enterprises have low expectations of increasing production and will continue to maintain a low operating rate in the short term, resulting in tight supply of coke. In terms of demand, downstream steel consumption is still weak, terminal transactions are weak, and the current coke inventory in the factory is at a reasonable level. Therefore, the overall purchasing intention is low, and steel mills still have the intention to lower prices. Overall, the coke market is still in a weak trend, with coke companies and steel mills all losing money. Currently, coke companies have a strong game mentality and collectively raise prices. It is expected that the coke market will operate steadily, moderately, and weakly in the short term. In the future, the focus will be on the inventory situation of coke in various links and the profit of coke steel.
The coke market in Shandong ports is operating weakly, with a quasi first level outbound price of around 2,000-2,050 RMB/ton and a first level outbound price of 2,100-2,150 RMB/ton. The spot market in ports is operating weakly, with low intentions of traders to gather at ports, a slight decrease in inventory at the two ports, and scarce trading.
Freight prices are a barometer of port mentality. Market sentiment is positive when freight prices rise, but weak when freight prices fall. This week, the port inventory has been relatively stable, and the overall negotiation atmosphere at the port has been weak recently. The enthusiasm of traders to gather at the port has been low.
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