Black Coke is expected to stand out in the second half of the year

 Black Coke is expected to stand out in the second half of the year

Iron ore futures, which had led the rise of commodities before, recently encountered Waterloo, and other black varieties collectively fell behind.

Wind data show that last week, the iron ore index fell 18.53%, the total transaction value reached 1.28 trillion yuan, the main contract of iron ore futures in 2001 dropped 11.80%, the main contract of thread steel in 1910, coke in 2001 and hot rolled coil in 1910 fell 5.90%, 6.79% and 3.95% respectively.

Coke price centre is expected to move up

Under the background of frequent overlapping market pessimism in the sky, how to lay out the black system?

Wang Jiechao of Minsheng Securities said that in the black industry chain, steel production began to decline due to the reduction of electric furnace output, supply pressure eased and steel prices stabilized. Although steel rebound may not be strong under the constraints of demand, coke has entered a tight balance between supply and demand due to the reduction of coke production capacity and environmental restrictions. Hope to stop falling and rebound, the distribution of coke single-win rate or higher.

In the spot market, Ruida Futures Research Daily pointed out that the domestic coke spot market was stable and strong, most traders suspended quotations and traded less; the relevant environmental protection documents in Xiaoyi area were issued, and coking enterprises implemented emission reduction measures from August 8 to 20, requiring coke ovens of 5.5 meters and above to extend coking time to 48 hours and less than 5.5 meters. Coke oven coking time is extended to 56 hours; Shandong individual steel mills accept the second round of coke enterprises increase, the port market confidence is enhanced, and the coke spot market is expected to run stronger.

Wang Jianhua, chief steel analyst at Shanghai Iron and Steel Federation, told reporters that among all black products in the second half of the year, the stronger trend may be coke. Wang Jianhua believes that the dominance of coke recessive inventory gives the market a feeling of high inventory. Independent coking enterprisesinventory is not high in fact. Once coke inventory, especially port inventory, falls, coke prices will rebound. For the steel supply side, there is limited space for steel demand to decline, once September and October demand. If the steel price rebounds, the supply and demand of coke may be tightened, and the price is expected to rise further.