During the week ending November 6, import quotations for premium hard coking coal from Australia moved down sharply as discharge of ex-Australia coking coal will not be allowed at Chinese ports by the end of the year. At the same time, the tradable value for coking coal from other countries to China has been at a high level, which pushed up the overall import price level in China.
A deal for premium hard coking coal from Canada has been heard at $138/mt CFR last week. Also, negotiations have been held with sellers from the US. This is much higher than the level for imported coking coal of the same grade at $130/mt CFR seen a week ago. At the same time, the CFR price for Australian premium coking coal dropped to $119.5/mt CFR China due to the import ban, with the price level being indicative.
Trading for hard coking coal in China has also been focused on alternative sources. The price for Russian coking coal has been heard in a deal at $122/mt CFR, which is much higher than the ex-Australia quotation of $110/mt CFR.
Coke prices in Tangshan are at RMB 2,100/mt ($317/mt) ex-warehouse, moving up by RMB 50/mt ($7.5/mt) compared to the previous week, according to SteelOrbis’ data. During the given week, coking plants’ capacity utilization rates have declined, with some of them halting production until mid-November. Currently, blast furnace capacity utilization rates are still at high levels, which will boost the demand for coke. Coal supply will decrease amid safety inspections, which will provide support for coke prices.
As of Friday, November 6, coke futures prices at Dalian Commodity Exchange (DCE) were at RMB 2,417.5/mt ($364.6/mt), increasing by RMB 228.5/mt ($34.5/mt) or 10.4 percent compared to October 30.
