Coke prices will fluctuate within a narrow range in the coming period
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According to the China Phosphorus Coal Industry Network, from January to July, coke production increased by 2.2% on a year-on-year basis, a decrease of 0.3 percentage points compared with the period from January to June; meanwhile, pig iron production rose by 3.5% year-on-year, an increase of 0.1 percentage point compared with the first half of the year. Looking at monthly data, after May, the growth rate of pig iron production was higher than that of coke for three consecutive months, and the gap between these growth rates gradually widened, indicating a marginal improvement in the fundamentals of coke. Furthermore, based on the supply and demand balance figures, there was a shortage of 1.56 million tons of coke from January to July, which became a key factor behind the recent rise in coke prices.
Under the current environmental considerations, the demand for coke will likely increase