How will coke go in the future?

After the 11th, along with the downstream environmental protection and production restriction, the price balance that lasted nearly two months was broken. At the same time, the steel profits were shrinking, and the pressure on coke became more and more intense. So far, the price of coke fell two rounds. After the price drop, the profits of coke enterprises have reached the profit and loss line, but the price drop has not brought about the improvement of the market, the downstream environmental protection is still continuing, just purchasing on demand, the port traders are also selling goods at a low price, the port price continues to hang upside down, the market sentiment is pessimistic, some enterprises even think there are still one or two rounds of decline. Is the future of coke market really so pessimistic? Today's think tank will give you an analysis of our opinions on the future market. The basic pattern of supply and demand has changed significantly. The price of coke has declined significantly. In fact, the supply is still too sufficient. The environmental protection of downstream steel enterprises is constantly restricted, and the impact on coke enterprises is limited. According to today's think tank, the pattern of loose supply has continued since the 11th, until recently, it has eased. Due to the pessimism of the future coke market, coke enterprises and port traders have delivered a large number of goods and received goods in the downstream generally, but the recent supply and demand data are obviously better.

The demand for steel is improving, the profit recovery is declining, and the demand for steel is also decreasing. However, in the near future, due to the demand driven by infrastructure projects, the price of steel is gradually improving, and the profit is beginning to pick up. In this case, the driving force for Coke will be relaxed. There is little room for coke price to fall. The pressure on coking coal is also great. The coal enterprises have to give the coke enterprises proper profits. When people think that the double Coke will enter the "cold winter", the customs policies on coal import and export restrictions have been issued one after another, and the main ports have made restrictions to varying degrees. At the same time, Mongolia As soon as the policy of unrestricted import of ancient coal was changed, the vehicles for customs clearance were also tightened this year. Considering the limited production of coke enterprises and steel enterprises, we can not guarantee the impact of the temporary restrictions on imported coal on the domestic coal supply, but at least there is a market boosting effect. Based on the above analysis, we believe that at present, the driving force of downstream pressure in the coke market is weakening, and the upstream raw material price is supported. The two reasons make the coke price unlikely to fall again. However, we need to pay close attention to the starting conditions of both coke and steel during the environmental protection period. After all, under the unbalanced supply and demand situation, any trend is possible.