During the week ending September 22, local coke prices in China have moved up, as reported earlier by SteelOrbis, bolstered by increasing coking coal prices in the global market, while activity for ex-Asia and ex-Russia coke has increased as well.
First-grade coke prices in Tangshan are at RMB 2,310/mt ($322/mt) ex-warehouse, moving up by RMB 110/mt ($15/mt) compared to September 15, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have moved on an uptrend amid the increasing trend of local coking coal prices. Meanwhile, some coking plants have implemented production restrictions, which reduced the supply of coke and bolstered prices. Demand from the steelmakers’ side has been quite good, exerting a positive impact on coke prices. Coking plants expect another round of rises in coke prices in the near future.
On September 22, offer prices of coke CSR65 in the export market have risen to $332/mt FOB, up $7.5/mt week on week. A deal at $330/mt FOB has been reported as having been done early this week. Also, 40,000 mt of ex-Indonesia CSR65 coke have changed hands at $340/mt FOB, for the Southeast Asian market, according to sources. “The PMV [premium mid-volatile coking coal] price is at $330/mt FOB, yes, but the actual coal blend cost is much lower than this, down to $260/mt FOB, so the coke ratio makes sense,” a source said.
At the same time, 35,000 mt of ex-Russia CSR66 coke have been traded at $340/mt CFR to India. Offers for ex-China material have been at $350/mt CFR, with bids at $340-342/mt CFR. Local coke prices in India have gained INR 3,000/mt ($36/mt) to INR 37,000/mt ($446/mt) ex-warehouse, including 18 percent GST.
As of Friday, September 22, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,861/mt ($260/mt), up by RMB 38.5/mt ($5.4/mt) or 2.1 percent week on week, down 1.53 percent from the previous trading day (September 21). Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,512/mt ($350/mt), increasing by RMB 30.5/mt ($4.3/mt) or 1.2 percent compared to September 15, and down 0.16 percent compared to the previous trading day.
$1 = RMB 7.173
