The price of national secondary coke rose by 37.8 CNY/ton

According to the latest data released by the National Bureau of statistics on December 16, in the first ten days of December, the price of national coke (secondary coke) was 1687.5 CNY/ton, up 37.8 CNY/ton or 2.3% compared with the previous period, the second increase since the middle of October. In December, many local governments issued environmental protection and production restriction or shutdown management documents for coking enterprises, involving Shanxi Fenyang, Hebei Tangshan and Shandong areas, resulting in intermittent production restriction of different degrees in coke enterprises in the main production area, with a small decline in the supply side. Due to short-term replenishment demand of downstream steel plants, most coke enterprises are in low inventory or zero inventory in the near future. In addition, Shandong regional coking industry capacity reduction policy further catalyses market confidence.

At present, the coke enterprises in the main producing areas continue to reduce the inventory, and with the increase of pre-sale volume, the coke enterprises in Shanxi, Hebei and other main producing areas have raised the coke price in two rounds. At present, the second round of increase in coke price has been fully implemented, with a cumulative increase of about 100 CNY/ton. In terms of supply, in addition to the intermittent production restriction in Shanxi, Hebei and some parts of Xuzhou, the coke enterprises in other areas of the main production area started to work at a high level, and the coke inventory in the site was low or even zero, so the coke enterprises had a good mentality. In terms of demand, some steel plants in the north are struggling to increase storage due to insufficient transportation and coke supply, while some steel plants in the south are mainly engaged in shipping. In the early stage, due to canal maintenance and other factors, the arrival of goods is not ideal, and there is still a certain demand for increasing storage. In terms of ports, the coke inventory of Shandong two ports has declined significantly in recent years, and it is mostly sent to the south. At present, the quotation of quasi First Metallurgical Co., Ltd. of Rizhao port is between 1830-1850 CNY/ton.

According to the data of China coal resources network, as of December 13, 2019, Shanxi Luliang quasi primary metallurgical coke was 1650 CNY/ton, up 50 CNY/ton compared with the same period last week, up 70 CNY/ton compared with the same period last month; Hebei Tangshan quasi primary metallurgical coke was 1910 CNY/ton, up 60 CNY/ton compared with the same period last week, up 100 CNY/ton compared with the same period last month; Shandong Rizhao quasi primary metallurgical coke was 1820 CNY/ton, up 60 yuan compared with the same period last week /Tons, up 90 CNY/ton from the same period last month. In the later stage, the coke market should mainly focus on the progress of Shandong's de capacity, the stock of steel mills and the change of steel prices.