In mid November, the price of national secondary coke fell by 12.2 CNY/ton

According to the latest data released by the National Bureau of statistics on November 25, in the middle of November, the price of national coke (secondary coke) was 1635.8 CNY/ton, down 12.2 CNY/ton, or 0.7%, compared with the previous period, and 0.5 percentage points narrowed compared with the first ten days of November. In the middle of November, the steel plant continued to keep a proper amount of inventory based on the principle of reasonable purchase. Most of the steel plant coke inventory was basically at a reasonable or even slightly high level. The start-up of the coke enterprises at the supply end was not significantly limited, and there was more inventory consumption in the plant, resulting in the steel plant still holding a strong bargaining power for coke price. However, after three successive rounds of price reduction, the profits of coke enterprises are squeezed, and even losses have been made in Inner Mongolia and other regions, while the profits of steel mills are relatively rich, and the willingness of some coke enterprises to support prices is becoming stronger. The steel coke game continued, and the decline of coke price narrowed.

After environmental protection warning was issued again in Hebei, Shandong, Shanxi and other regions. As the limited production enterprises are the coke enterprises with sustained limited production in the early stage, there is no significant impact on production, and the supply remains high and stable. Due to the low profit and the late end-user's certain winter storage behavior, coke has strong willingness to support the price. In terms of demand, the steel plant has sufficient inventory and further replenishment of the stock The willingness is not strong, but in terms of traders, the market is unstable, and there is no willingness to receive goods. As a whole, the supply and demand of coke is relatively loose. Both sides are mainly on the sidelines, and the market volatility is reduced. It is understood by China coal resources network that last week (November 18-24) the environmental protection of coke enterprises in the main producing area became stricter. In Shanxi, in Luliang, Jinzhong, Linfen, Changzhi and other regions, coke enterprises all limited their production to varying degrees, with a range of 10-30%. The implementation of environmental protection this time is stronger than that in the earlier stage, or will affect the regional coke supply in a short time. Affected by this, on November 22, a large coke enterprise in Hebei raised the price of coke by about 50 CNY/ton for the first time, and the scope of the increase of coke enterprises in the main production area continued to expand. In addition, the recent frequent coal mine accidents have brought strict safety inspection and long-term coal price stabilization. The cost of raw materials has been significantly supported. The coke enterprise mentality has started to improve, and its willingness to support prices has increased. Some of the oversold resources have been recalled. According to the data of China coal resources network, on November 22, 2019, the first-class metallurgical coke in Luliang, Shanxi Province was 1550 CNY/ton, which was flat compared with the same period last week, 90 CNY/ton lower than the same period last month; the first-class metallurgical coke in Tangshan, Hebei Province was 1810 CNY/ton, which was flat compared with the same period last week, 50 CNY/ton lower than the same period last month; the first-class metallurgical coke in Rizhao, Shandong Province was 1730 CNY/ton, which was flat compared with the same period last week, which was lower than the same period last month 70 CNY/ton. However, at present, there is no obvious support for both ends of coke supply and demand. Under the condition of profit recovery of downstream steel plants, it is more difficult to suppress raw materials, but the stock of steel plants is still at a high level, and the resistance to coke rise is relatively large. It is expected that Coke will run stably in a short time.