Over the past week China's metallurgical coke market has lacked support for upward movement. With local steel product prices starting to fall after their previous increases, the increasing prices of domestic coke enterprises have not been accepted by most steel mills. At present, domestic coke enterprises are still limiting their outputs.
Product name | Specification | Place of origin | Average price (RMB/mt） | Weekly change (RMB/mt) | Average price ($/mt) | Weekly change ($/mt) |
Coke | 2nd grade | Shanxi | 1,580 | - | 233 | - |
Shanghai | 1,800 | -50 | 266 | -7 |
The Chinese coke market has basically remained stable in the past week, lacking sufficient momentum to climb upward. Over the past week the mainstream quotations of second grade metallurgical coke from large scale producers in Shanxi Province have been at RMB 1,550-1,600/mt ($229-236/mt), unchanged week on week, with quotations for first grade metallurgical coke standing at RMB 1,700-1,750/mt ($251-258/mt), also remaining neutral week on week. Meanwhile, the purchase prices of Hebei Province-based mills are at RMB 1,680-1,700/mt ($248-251/mt) for second grade metallurgical coke. The mainstream prices in the eastern China 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 remained stable at RMB 1,350-1,450/mt ($199-214/mt).
Steel mills in Hebei Province have increased their purchase prices slightly. However, mills in other regions have maintained unchanged purchase prices for coke. In addition, coke inventory is at sufficient levels at most domestic mills at the current time.
On the other hand, domestic coke enterprises are seeking opportunities to raise the prices of coke. Most coking enterprises are still in a loss-making situation due to the high prices of coking coal. According to Hebei Coke Association, coking enterprises in the province are registering losses of around RMB 150/mt, and so the association has called on members to continue to restrict production, to control stocks of coal and coke, to lower coal prices and to raise coke prices in order to reverse the current loss-making situation.