Futures: Coke rebounded in shock on Wednesday, closing at 1,695 (up 25), with a total reduction of more than 10,000 positions and a decrease in tradin. With the global spread of COVID-19, monetary easing in many countries has stabilized the economy, and crude oil demand has plummeted. The apparent consumption of domestic building materials rebounded to a high level, and the black energy variety was under pressure after surging, while the capital in coke plate decreased and rebounded.

Spot: the coke market is stable today. Quotation of metallurgical coke: Rizhao second grade 1,700, Tangshan second grade 1,650, Linfen first grade 1,550. Port inventory: Rizhao Port 134 (decrease 4), Qingdao port 171 (increase 2). In terms of coke enterprises, the supply is stable, the operating rate is basically the same as that in the earlier stage, the willingness to hold up the price under the condition of low profit is enhanced, the inventory in the coke enterprises of the main production area continues to decline, and the situation of purchasing and signing of orders by traders in steel mills is gradually improved. In terms of steel plants, the operating rate of blast furnace has been rising steadily, and the trading volume of downstream building materials has reached the normal level of the market. However, due to the poor profit of finished materials and the impact of inventory pressure, the overall demand for coke is still based on demand, some demand for coke has been increased, and the contradiction between supply and demand has been significantly improved. In a comprehensive view, the coke market is stable in the short term.

Strategy analysis: at present, the government strengthens macro-control, looses policies release liquidity to stabilize the market, fully promotes resumption of work and production, and increases counter cyclical adjustment. As the COVID-19 spread overseas, many countries implemented monetary easing policies, the global stock market industrial products riots, OPEC production reduction agreement less than the market expected, crude oil continued to weaken. In the near future, the inventory of building materials and social inventory of downstream steel plants began to drop, the terminal demand recovered in an explosive manner, and the overall wide fluctuation of futures and spot goods. Under the favorable influence of domestic and foreign easing policies, the demand for building materials in the second quarter may remain high, and the support will be strengthened after the futures fall to the undervalued and low price areas.

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