Price levels in the Chinese coke market have remained unchanged throughout the past week. Since the Shanxi Coking Industry Association has not announced guideline coke prices for August, most coke producers are reluctant to raise their prices rashly. Generally speaking, domestic coke prices are expected to indicate an uptrend in August.
Product name | Specification | Place of origin | Average price (RMB/mt) | Weekly change (RMB/mt) | Average price ($/mt) | Weekly change ($/mt) |
Coke | 2nd grade | Shanxi | 1,710 | - | 250 | - |
Shanghai | 1,800 | - | 264 | - |
The Chinese coke market maintained an overall stability throughout the past week, but rising momentum still exists for the market in August. At present, the mainstream quotations of second grade coke from large producers in Shanxi Province are still in the range of RMB 1,700-1,750/mt ($249-256/mt), while Hebei Province-based mills have kept their purchase prices at RMB 1,750/mt ($256/mt) for second grade coke. Meanwhile, coke prices in Pingdingshan, Henan Province are at RMB 1,650/mt ($242/mt), with the mainstream prices in the eastern coke market at RMB 1,800-1,850/mt ($264-271/mt), both neutral week on week. In addition, the mainstream prices of coking coal in the domestic market are still in the range of RMB 1,200-1,300/mt ($176-190/mt).
Over the past week China's domestic finished steel market has continued to soar strongly, with the daily price increase for construction steel reaching even as high as RMB 300/mt ($44/mt) in the Shanghai market. At present, HRB 335 rebar prices in Shanghai are at RMB 4,520/mt ($662/mt) on theoretical weight basis. Meanwhile, semi-finished steel prices in Hebei Province have gone up by RMB 200/mt ($29/mt), with a steady rise also seen in pig iron prices. Against the background of the booming finished steel market, mills have greatly expanded their production volumes, contributing to the continuous rise in demand for coke. Since the Shanxi Coking Industry Association has not yet held their monthly meeting to decide the August guideline prices, and with coking enterprises all over the country waiting for the latest price policy, most players in the coke market are adopting a wait-and-see stance for the time being. In addition, it is heard that some Shanxi Province-based large-scale coke producers intend to raise their prices by RMB 100/mt for August; however, they have not yet issued the adjustment officially as the new guideline prices have not been announced. On the whole, in the context of the tight availability of coking coal supplies as well as the brisk demand for coke from the mills, Chinese coke prices are expected to move on a rising trend in the month of August.