During the week ending January 29, import quotations in China have edged up just slightly and activities have been very limited. Coke prices in the domestic market have gained support from restocking activities. At the same time, premium hard coking coal prices from Australia have surged, supported by demand from alternative regions.
Quotations of premium hard coking coal from Australia are equivalent to at $173-174/mt CFR China, up $27.5/mt compared to last week. The increase happened after a new deal price level reached $154/mt FOB in the middle of the week. Hard coking coal prices from Australia are equivalent to $148/mt CFR, up $24/mt compared to the previous week.
Meanwhile, import prices in China have posted a slight change on CFR basis. Coking coal from Canada is available at $218/mt CFR, up $1/mt week on week, while the ex-Russia coking coal price is at $190/mt CFR, up $12/mt, compared to last week.
Coke prices in Tangshan are at RMB 2,800/mt ($433/mt) ex-warehouse, moving up by RMB 100/mt ($15.5/mt) compared to last week, according to SteelOrbis’ data.
During the given week, supply of coke has been tight, while the inventory levels on the steelmakers’ side has risen amid the resumption of purchases as they built up their stocks. Demand for coke has been good, which bolstered prices. Chinese coking plants’ capacity utilization rates have been at relatively high levels, resulting in decent demand for coking coal.
As of Friday, January 29, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,554/mt ($395/mt), decreasing by RMB 217/mt ($33.5/mt) or 7.8 percent compared to January 22.
$1 = RMB 6.4709