Coke enterprise opens the third round of increase of 50 CNY/ton

According to market news, a large coke enterprise in Hebei started the third round of raising the coke price, with an increase of 50 CNY/ton. After the increase, the price of quasi primary CDQ will be 2030-2080 CNY/ton, including tax for ex factory acceptance, which will be implemented from December 18. According to the understanding of the Ministry of energy and metallurgy of Fenwei on December 17, affected by the capacity reduction and the early warning of limited production, the supply side of coke has shrunk at present. At this stage, the inventory of coke enterprises in the factory is low, and some coke enterprises have reached the end of the month or the beginning of the next month, so coke enterprises are relatively optimistic and willing to continue to explore the increase. Fen Wei monitoring data show that last week (12.6-12.12, the same below) in Yuncheng, Shanxi, Tangshan, Hebei, Anyang, Henan and other areas affected by air quality early warning, coke production has been limited to a small extent. The production limit is about 20-30%.

However, some coke enterprises in Shanxi gradually resume production after the recent environmental protection warning is lifted, and the production of coke enterprises in other areas is temporarily stable. Overall, although the production of coke enterprises has increased or decreased this week, the overall performance is stable. Last week, coke inventory in coke enterprises continued to decline, with a 9.7% decrease in the weekly to ring ratio. Coke enterprises are actively shipping, most coke enterprises are ideal for inventory removal, and the factory inventory remains low or even no inventory. In terms of steel plants, due to the recent difficulties in railway vehicle approval, rain, snow, fog and other factors affecting the arrival of steel plants is not ideal, the inventory has a downward trend, and in the short term, it is mainly positive to increase the inventory. The monitoring data shows that last week, the coke inventory of the sample steel plant slightly increased by 0.6% on a weekly basis. Some regions in the north are struggling to increase the storage, and some steel mills in East China are not ideal for coke delivery. Due to the transportation problems of fire and water transportation, the coke inventory in some steel enterprises has declined, and they will start to arrange replenishment in the near future.

In terms of ports, the price reverse traders gather port passively, but the domestic trade water volume is slightly increased due to the increasing demand of some downstream, and the port's inventory reduction is more obvious. Overall, in the short term, affected by the tightening of supply and demand margin, the coke market performance is relatively strong. With the increase of coke price, the profit of coke enterprises has expanded. Compared with the low level of finished products, the sustainable transmission in the later period depends on the attitude of steel plants to replenish the warehouse. From the current steel output, the space for further expansion is limited, and the path to transmit the profit to coke enterprises is only to tighten the supply. In the later stage, if the capacity reduction policy is implemented smoothly, it is more likely that Coke will rise and land in the third round.