Notwithstanding the recent relief in sentiments in the steel market, Chinese steelmakers have not been in a hurry to accept higher prices for raw materials. Moreover, Chinese customers continue to take advantage of Russian suppliers' difficulties, stemming from Russia's isolation due to economic sanctions. Subsequently, Chinese steelmakers have continued to conduct active negotiations with Russian producers of coking coal, searching for even lower prices compared to those the suppliers target. In particular, by the end of the given period offers of Deni Deep premium coking coal produced by Russian Kolmar Coal Company have been heard at $300/mt CFR China, down by $40/mt compared to the levels voiced by the supplier in early June. Meanwhile, Inagli coking coal prices have been voiced at $260-270/mt CFR China, declining by $30-40/mt during the same period. “The market is rather unstable and has been very volatile during the last two days, and so we are holding back from new bookings,” an international trader commented. “The current offers still sound high. We expect lower levels will be voiced soon,” a Chinese distributor stated.
Meanwhile, ex-North America premium coking coal prices have remained completely unattractive for Chinese customers, assessed at around $430/mt CFR China, albeit down $40/mt from the previous levels.
In the metallurgical coke segment, as SteelOrbis reported earlier this week, the second price reduction was temporarily postponed, given the mixed sentiments in the market. Coke prices in Tangshan have remained at RMB 3,060/mt ($457/mt) ex-warehouse, moving sideways compared to June 24. Meanwhile, Chinese exporters, aiming to secure themselves from any further drop in prices, are said to be ready to book 25-90mm of BF grade metallurgical coke (65/63% CSR) at $510/mt FOB, versus $550/mt FOB a week ago. In the meantime, metallurgical coke (62/60% CSR) is available at $490/mt FOB, SteelOrbis has learned. Nevertheless, no apparent buying activity has been heard either in Europe or in India. Specifically, domestic metallurgical coke prices in the eastern regions in India dropped to INR 42,000/mt ($532/mt) ex-works and below, down INR 6,000/mt ($76/mt) from the earlier valid levels. Such developments have been triggered by the continued fall in ex-Australia coking coal prices. European customers, in their turn, remain more focused on cooperation with Colombian suppliers. Specifically, ex-Colombia BF grade metallurgical coke (65% CSR) is available at $510/mt FOB.
The sentiments in the futures market have again become bearish. Accordingly, by the end of the current week, coking coal prices at Dalian Commodity Exchange (DCE) have settled at RMB 2,280.5/mt ($340/mt), down RMB 63/mt ($10/mt) today. Meanwhile, coke futures prices have declined by RMB 48.5/mt ($8/mt) today to RMB 3,009/mt ($449/mt). Coking coal and coke futures prices have almost rebounded to the levels fixed on Friday, June 24.
Meanwhile, at the Singapore Exchange (SGX), ex-Australia coking coal prices for July contracts have fallen by $7.34/mt from the previous levels, to $302.33/mt, while for August contracts have been settled at $298/mt, down $6.67/mt.
$1 = RMB 6.70