The second round of price reduction of coke in Shanxi

Last week, the capacity utilization rate of coke enterprises in Shanxi Province was 70.0%, down 0.6%; the coke inventory was 414000 tons, up 46000 tons; the coke coal inventory was 3.429 million tons, down 59000 tons; the available days were 14.4 days, down 0.1 day. Affected by the regional weather warning in some areas of Shanxi Province, the overall operating rate of coke enterprises has declined slightly; the coke inventory of downstream steel plants is in the middle and high level, most of which are purchased on demand, and some steel plants still have the situation of controlling the arrival of goods, and the coke inventory has increased significantly. The steel plants in Shanxi, Hebei and Shandong all started to reduce 50 CNY/ton in the second round. In the process of implementation, the market sentiment was pessimistic, the profit of downstream steel plants continued to be low, the willingness to suppress the raw material price was strong, and the decline trend of coke price in this round has been determined. On the whole, the demand side gives weak support to coke, and the short-term spot price of coke continues to be under pressure and weak operation. In the follow-up, we need to focus on the change of environmental protection policy and the change of inventory in each link.