Poor downstream demand coke market continues to run weak

In the case of poor downstream demand, the recent coke market continued to run weak. In terms of supply, Shanxi, Shandong and other places are affected by regional weather warning, and the regional temporary production restriction is increasing, and the operation rate of coke enterprises is obviously declining. It is understood by Fenwei energy that due to the poor air quality in autumn and winter, the early warning of environmental protection in Luliang region of Shanxi Province has been extended to November 8, and the coke enterprises have been affected by the inspection in varying degrees. At present, the starting load is kept at 60-90%. At the same time, during the environmental protection warning period, it is prohibited to ship vehicles under 5, which affects the local coke enterprises to accumulate a small amount of inventory, and the local quasi primary mainstream factory tax is between 1550-1580 CNY/ton.

As of November 1, the comprehensive operating rate of 100 independent coke enterprises in China was 75.14%, down 1.85% on a month on month basis. Although the pressure on the supply side was slightly relieved, the demand side was more affected by the production restriction, which accelerated the inventory accumulation of coke enterprises. It is near the end of each year that the northern part of China takes the lead in cooling. The cold air will affect the construction process, thus reducing the consumption of steel market in disguise. At the same time, from the perspective of environmental protection, after entering November, the haze weather in the north will become more and more serious, many places will face the air pollution control war in autumn and winter, the policy of environmental protection and production restriction will be strictly implemented, and the contradiction between supply and demand of Coke will gradually accumulate. In the near future, Tangshan, Hebei Province, issued the plan for strengthening the management of air pollution prevention and control in Tangshan in November, which is basically the same as that in October.

At the same time, affected by the weather, Tangshan decided to start the level II emergency response for heavy pollution weather at 8:00 on October 31, with the termination time to be notified separately. In addition, according to the investigation of relevant organizations, there are 24 blast furnaces that have been shut down in autumn and winter and are planned to be shut down, with a total volume of 15860 cubic meters. The daily impact coke consumption is about 30900 tons, including 11 new shut-down blast furnaces in November, and the daily impact coke consumption is about 16900 tons. From the demand side, the support for coke price is still weak, which enhances the steel plant's confidence in coke price suppression. It was learned by the Ministry of energy and metallurgy of Fenwei on November 6 that at present, downstream steel enterprises generally purchase on demand, and generally maintain low and medium inventory due to weak market expectation. The purchasing sentiment of traders is also relatively low, and they mainly wait and see. On the whole, the inventory of each link of coke is on the high side and needs to be consumed, and the short-term market is expected to be dominated by weak operation.