Still characterized by a general stability, the Chinese coke prices have maintained unchanged at its previous levels during the past week. Generally speaking, the fluctuation in the finished steel market hasn't impacted the domestic coke market recently. In September, China's coke output continued to rise, with exports remaining at relatively low levels.
Product name | Specification | Place of origin | Average price (RMB/mt) | Weekly change (RMB/mt) | Average price ($/mt) | Weekly change ($/mt) |
Coke | 2nd grade | Shanxi | 1,550 | - | 230 | - |
Shanghai | 1,800 | - | 264 | - |
The coke prices in the Chinese market have remained unchanged throughout the past week. At present, the mainstream quotations of second grade coke from large producers in Shanxi Province are at the level of RMB 1,550/mt ($230/mt), while Hebei Province-based mills have kept their purchase prices at RMB 1,600-1,650/mt ($235-242/mt) for second grade coke. Meanwhile, the mainstream prices in the eastern coke market are in the range of RMB 1,700-1,800/mt ($250-264/mt). In addition, the mainstream prices of coking coal in the domestic market have remained constant in the range of RMB 1,200-1,250/mt ($176-183/mt).
China's coke market posted a general stability in various regions over the past week. As a result of the temporary rebound in steel prices, Chinese coke producers have undergone certain improvement in their sales activities in recent days, and thus some producers have gradually generated the intention of hiking their prices. Nevertheless, with the steel prices declining again, it becomes unlikely for domestic coke prices to go up. Therefore, the Chinese coke market is expected to maintain stable in the short term.
China's coke output for September totaled 31.514 million mt, up 6.24 million mt or 24.7 percent year on year and up 0.9 percent month on month. Meanwhile, national coke output for the January-September period reached 253.691 million mt, up 3.49 million mt or 1.4 percent year on year. The relatively high coke production generally matches the current steel production, but if the Chinese mills cut their production in the near future, coking enterprises will have to face the increased pressure accordingly.
In September, China's coke exports totaled 40,200 mt, down 5.92 percent month on month and down 97 percent year on year. Total coke exports in the first nine months of this year reached 377,800 mt. The export market of Chinese coke has showed a general stagnancy in recent days. Despite the sufficient coke export quotas, export volume of Chinese coke has shrunk significantly due to the relatively high export tariffs.