Shanxi coke market fell by an average of 100 yuan per tonne in July

Affected by the limited production and shutdown of small steel plants, the coke market in Shanxi Province experienced a larger decline last month, and the average price of coke per ton dropped by about 100 yuan. Industry sources said that if the coke production limit can continue, August coke prices may rebound slightly.

Statistics show that the coke market in our province and even the surrounding areas experienced a larger drop in early July, and the transaction price of secondary coke was between 1,500 and 1,700 yuan/ton. A person in charge of a coking company in the south of the province stated that there were many reasons for the sharp drop in the price of coke in July. On the one hand, July is the traditional off-season of the steel market. Large-scale steel mills have a lot of coke in inventory, and the enthusiasm for coke procurement is not very high. On the other hand, with the adjustment of the country’s steel industry structure, some small steel plants were forced to restrict production or even stop production. The market’s demand for coke has shrunk dramatically.

However, after entering the second half of July, the steel market has experienced more than a week of gains. So, can the province's coke market usher in a wave of gains? The person in charge believes that from August's procurement contract, the purchase price of major steel mills in August did not change much. However, with the signs of a pick-up in the steel market, small steel mills may have to restore some of their production capacity. In addition, with the continuation of measures to limit the production of coke enterprises, the supply and demand of the coke market in our province and even its surrounding areas is bound to change. Based on the above factors, he believes that there may be a slight rebound in coke prices in August.