The domestic metallurgical coke market in China maintained a stable trend last week. In the spot market, coking coal prices still stand at high levels, while there is still a lack of high quality coal. The coke market in China is still characterized by oversupply, while there is strong competition in the market. In coke futures at Dalian Commodity Exchange, the main J1109 contract fluctuated last week, with the price closing at $355/mt at the end of the week. The high coking coal prices continue to provide support for domestic coke prices.
Coke prices in local markets in China
Product name | Specification | Place of origin | Price (RMB/mt) | Price ($/mt) | Weekly change（RMB/mt） |
Coke | Second grade | Hancheng, Shaanxi | 1,800 | 280 | 0 |
Zibo, Shandong | 1,900 | 295 | 0 | ||
Pingdingshan, Henan | 1,980 | 307 | 0 | ||
Shanghai | 2,050 | 318 | 0 | ||
Huaibei, Anhui | 1,950 | 303 | 0 | ||
Average | 1,936 | 301 | 0 |
Domestic second grade coke prices in China are unchanged from the previous week. The average second grade coke price in China is reported at $301/mt.
Steel mills have adjusted their ex-works prices upward for August, while they are still cautious about purchasing coke. Most steel mills say their coke inventories are sufficient for one to two weeks. Some steel enterprises have very low coke inventories and so coke producers are confident on the prospects for the domestic coke market in the future. Current coking coal prices are at around $232.9-248.4/mt. Thus, costs remain high for coke producers and their margins remain limited. In the coming week, it is expected that coke prices in China will maintain their levels of the past week.