As of August 8th, the closing price of the main contract was 1,966 RMB, a month on month increase of -28 RMB. Fenwei CCI Lvliang quasi first grade metallurgical coke was reported at 1,710 RMB, unchanged from the previous month, while Rizhao quasi first grade metallurgical coke was reported at 1,780 RMB, with a month on month decrease of -30 RMB. The warehouse receipt at Rizhao Port is 1,969 RMB, with a futures discount of 3 RMB. The market continues to be pessimistic, and there are still expectations of a downward trend in the future.

As of August 8th, according to data from Steel Union, the national average profit per ton of coke is 2 RMB, with a weekly profit of -19 RMB. Among them, the average profit of Shanxi quasi first grade coke is 30 RMB (-16), Shandong quasi first grade coke is 41 RMB (-24), Inner Mongolia's second grade coke is -33 RMB (-17), and Hebei quasi first grade coke is 68 RMB (-19).

As of August 8th, the average daily production of coke from 247 steel mills (2,232, -47.00, -2.06%) was 472,000 tons, with a week on week increase of 0.1%. The average daily production of coke from all sample independent coking plants was 675,000 tons, with a week on week decrease of 0.5%. The total production is estimated to be between 0.4 and 1.183 million tons. Jiao enterprises still have profits and production remains at a high level.

As of August 8th, 247 steel mills have a daily average of 2.317 million tons of molten iron, with a week on week decrease of -4.9 million tons. Converted to coke demand of 1.183 million tons, the decline in molten iron exceeded expectations, and the daily supply-demand gap increased by 2.1 to -0.04 million tons compared to the previous week. Recently, steel mills have conducted maintenance on thread production lines, resulting in a significant decline in molten iron and a significant convergence of supply and demand.

As of August 8th, the total inventory of coke was 8.254 million tons, with a week on week decrease of -28,000 tons. Among them, the coke inventory of independent coke enterprises in the full sample was 671,000 tons, with a week on week increase of +108,247 and a week on week decrease of 5.362 million tons from steel mills, with a week on week decrease of -6.9. The port inventory was 2.22 million tons, with a week on week decrease of 6.7. The arrival of steel mills continues to improve.

The spot price of coke has started its third round of decline, with the market falling at the level of the fourth round. Although the profits of coke enterprises have fallen, they still have profits and their production efforts have not decreased. However, the production of thread and hot coil (3,668, -61.00, -1.64%) has decreased significantly, and the iron ore has declined beyond expectations. The supply and demand gap of coke has significantly converged and begun to move towards looseness. Steel mills are continuously controlling the delivery situation, causing coke enterprises to accumulate inventory. Given the current supply and demand and profit situation, it is expected that coke prices may continue to rise or fall in the future, and it is recommended to focus on short selling.

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