Steel market rebounded coke prices first to pick up in the year

In the coke market that fell for 5 months, the first time there was a signal of price correction. On the 5th, a number of industry insiders told the reporter that many coking companies including Shanxi, Henan, and Shandong are brewing the overall price of coke.

In addition, the industry will enter the traditional peak season of consumption in September, plus the multiple advantages of the macro level, but also make the industry optimistic about the coke prices rebounded further.

The coke prices rebounded from the weakness of the downstream steel industry, coupled with the overcapacity of their own, causing coke prices to “fall” in the first half of the year.

The data shows that since late February of this year, coke stocks have entered a fast-declining channel, and the down cycle has continued for 5 months, a decline of nearly 30%.

However, in July, the rapid rebound of the steel industry seems to have boosted the confidence of the coke market, allowing the upstream coke industry to see signs of recovery after five consecutive months of decline.

Since late July, the decline in coke prices has gradually slowed down, and both spot and ** markets have recently shown signs of recovery.

On the 5th, the calculation data of “My Steel Network” showed that the coke comprehensive index rose by 11.6 yuan/ton in six trading days, or an increase of 0.91%. Since the decline in February, it has seen a correction for the first time in the year.

In terms of **, the main coke contract closed at 1,488 yuan/ton yesterday and gained 0.94% throughout the day. This was the fourth consecutive day of trading.

More than jiaozou prices brewing Recently, the news that coal-producing provinces Shanxi prepare to increase the price of coke, in addition to Henan, Shandong and other places a number of coking enterprises are also brewing the overall price of coke.

According to media reports, at the work conference held at the Shanxi Jiaoxi Association last weekend, it was proposed that the major coking enterprises in the province will increase coke prices by RMB 30-50/t in August. Prior to this, Henan Pingmei Shenma Group has raised the price of coke in August at RMB 50/ton, which is an increase of 4%.

“In fact, the willingness of enterprises to increase their prices started from the end of July.” Pang Xuejie, an analyst at China Coal Resources Network, said that due to the rapid recovery of steel prices in July, the demand for steel for the market has improved, which has boosted the Coke market confidence.

Pang Xuejie introduced that since late July, many coke enterprises in Shandong and Hebei have expressed their desire for price increases to steel mills.

In addition, coke industry analyst Wang Xufeng said that the recent macro-level policy signals indicate that squatter reconstruction, railway investment, and urbanization will become the focus of national investments in the second half of the year and later, and will definitely increase the demand for steel. It will also further boost the recovery of the coke market. "The investment for railway construction in the second half of the year alone may exceed 400 billion yuan, which will stimulate the operating rate of steel and metallurgical companies, and then increase the demand for the use of coking coal."