Foundry Coke/Met Coke Market Price Fluctuations,Future Trend Draws Attention

Recently, the coke market has witnessed severe price fluctuations, which have attracted widespread attention from customers. Since July, foundry coke ,metallurgical coke and semi coke prices have started a consecutive upward trend. As of August 22, there have been 7 rounds of cumulative price increases, with the cumulative increase of wet quenched coke metallurgical coke foundry coke reaching 350 CNY/ton and that of dry quenched coke coke breeze hitting 385 CNY/ton.  This round of price hikes is mainly driven by cost support and improved demand. Affected by factors such as environmental protection and work safety supervision, the supply of coking coal in the upper stream has declined, leading to a rise in its price and thus pushing up the production cost of coke. On the demand side, downstream steel mills have shown high enthusiasm for stockpiling, the daily average supply of molten iron remains stable, and the market demand is steady, maintaining a tight balance between supply and demand.Characteristics of foundry coke: high calorific value, low ash content, strong compressive strength, therefore it is widely used in the molten iron chemical casting industry.

However, since the middle of August, the coke market has returned to the logic of supply and demand fundamentals, and futures prices have generally declined. With the arrival of the traditional off-season for the steel industry, high temperatures and rainy weather have affected the production of steel mills. Some steel mills in certain regions are facing production cuts due to environmental protection policies, and the decline in molten iron output has restrained the demand for coke. At the same time, the release of favorable macro expectations has ended, speculative demand has withdrawn, coking coal prices have stabilized, the driving force for cost-side price increases has weakened, and coking plants lack sufficient confidence to raise prices after their profits are restored.Therefore, the prices of cast coke, metallurgical coke, and semi coke will receive a favorable discount!

Currently, coking plants and steel mills in Shandong, Hebei and other regions have expectations of production limits, so the probability of a contraction in spot coke supply is relatively high. Most coking plants and downstream steel mills have low inventories, which provides support for coke prices. Analysts generally believe that the coke market will show a stable-to-strong trend in the short term. However, in the long run, factors such as the low-carbon transformation of the steel industry, expectations of crude steel production cuts, and the increase in raw material imports may have an impact on the demand and cost support of the coke market. We advise all customers to closely monitor market dynamics and make reasonable procurement plans. We will also continue to provide you with the latest market information.

v