During the past week China's metallurgical coke market registered just a slight increase, while the outlook is not so optimistic for the coming period given the weakness of the domestic finished steel markets.
Product name | Specification | Place of origin | Average price（RMB/mt） | Weekly change (RMB/mt) | Average price ($/mt) | Weekly change ($/mt) |
Coke | 2nd grade | Shanxi | 1,610 | 30 | 237 | - |
Shanghai | 1,800 | - | 273 | - |
During the past week China's domestic coke market has increased slightly. The mainstream quotations of second grade metallurgical coke from large scale producers in Shanxi Province have been at RMB 1,580-1,630/mt ($232-240/mt), up by RMB 30/mt ($4/mt) week on week, with quotations for first grade metallurgical coke standing at RMB 1,700-1,750/mt ($251-258/mt), remaining neutral week on week. Meanwhile, the purchase prices of Hebei Province-based mills are at RMB 1,750-1,800/mt ($257-265/mt) for second grade metallurgical coke, up by RMB 50/mt ($7/mt) week on week. The mainstream prices in the eastern Chinese coke market are at RMB 1,800/mt ($265/mt), while prices in northeastern China are at RMB 1,650/mt ($243/mt), unchanged week on week. In addition, the mainstream prices of coking coal in the overall domestic market have been at RMB 1,400-1,500/mt ($205-220/mt), up by RMB 50/mt ($7/mt).
Coke prices in some regions increased slightly in the past week. Transactions in the coke markets in Shanxi and Hebei were at a good level, with the coke inventory of most coking enterprises declining. However, with the significant decline in steel prices in the domestic market, coke demand started to be negatively affected. Meanwhile, steel mills chose not to raise their purchase prices of coke any further, and so some coking enterprises lowered their outputs to the levels of the previous period.
In Shanxi Province, prices of premium grade coking coal are up by RMB 50/mt ($7/mt), though demand in the downstream market has been uncertain. Looking at the current market, finished steel prices are expected to greatly affect the market trend of coke in the coming period. Most market players are not optimistic about the coke market, because some mills have chosen to shut down or limit production due to the narrowing of their profit margins, thereby directly affecting coke demand.