During the week ending July 28, coke prices in China have continued their uptrend compared to the previous week. This has also provided support for import coking coal prices with a number of deals done at higher levels.
First-grade coke prices in Tangshan are at RMB 2,200/mt ($308.4/mt) ex-warehouse, moving up by RMB 110/mt compared to July 21, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
|
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng,Shaanxi |
2,160 |
302.8 |
110.0 |
15.9 |
|
Zibo ,Shandong |
2,350 |
329.4 |
110.0 |
15.9 |
||
|
Pingdingshan,Henan |
2,200 |
308.4 |
0.0 |
0.5 |
||
|
Tangshan |
2,200 |
308.4 |
110.0 |
15.9 |
||
|
Huaibei,Anhui |
2,250 |
315.4 |
0.0 |
0.5 |
||
|
Average |
2,232 |
312.9 |
66.0 |
9.8 |
including 13 percent VAT
During the given week, coke prices in the Chinese domestic market have moved on an uptrend after the third round of increases of RMB 110/mt (15.9/mt) was accepted by steelmakers in some regions. However, some coking plants have started to implement production restrictions due to their losses. Supply of coke has been shrinking, while inventory levels have decreased amid the improved booking from traders and steelmakers. Steel prices have been at relatively high levels, contributing to the good profitability on the steelmakers’ side. It is thought that coke prices may move sideways in the coming week.
In the export market, ex-China coke CRS 63/65 tradable levels have been at $305-310/mt FOB, versus previous sales at $300/mt CFR reported around ten days ago, while some offers have already been voiced at $315/mt FOB. Also, ex-Indonesia CSR 65 coke has been offered at $310/mt FOB.
The rises seen in the local metcoke market in China have supported import coking coal prices. For instance, there has been a deal for low-volatile Australian coal from a trader at $245/mt CFR, up by $5/mt since late last week. In addition, a few market sources added that $250/mt CFR is the tradable level for ex-Australia premium hard coking coal now.
Moreover, bookings for ex-Russia coal have increased this week. In particular, premium ex-Russia K-10 hard coking coal has been traded at $195/mt CFR and at $201/mt CFR this week, indicating a strong increase compared to a $174/mt CFR sale but for K-4 material reported a week ago. In addition, Inagli coal has been sold at $167/mt CFR China.
New offers for ex-Russia PCI have increased to $160/mt CFR, versus the last deals at $150-152/mt CFR.
As of Friday, July 28, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,485/mt ($208/mt), down by RMB 17/mt ($2.3/mt) or 1.1 percent week on week. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,297.5/mt ($322/mt), increasing by RMB 12/mt ($1.7/mt) or 0.53 percent compared to July 21.
$1 = RMB 7.1338