Chinese coke prices post minor rise in some regions

Propped by the increased costs and some other factors, the Chinese coking enterprises generally hiked their ex-factory prices of coke slightly in recent days, but mills haven't yet shown their attitude as regards the raised price levels. Given the continuing bearishness in the finished steel market, coke market in China is expected to feel the negative impacts in the coming period. Additionally, export market of Chinese coke remained slack in the month of July.

Over the past week, a minor rise was observed in the domestic coke prices that were mainly boosted by the increased cost levels. 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 adjusted their purchase prices in the range of RMB 1,750-1,800/mt ($256-264/mt) for second grade coke, with their prices for first grade coke staying at RMB 1,900-1,950/mt ($278-286/mt). Meanwhile, coke prices in Pingdingshan, Henan Province are up by RMB 50/mt ($7/mt) to RMB 1,700/mt ($249/mt), with the mainstream prices in the eastern coke market at RMB 1,800-1,900/mt ($264-278/mt). In addition, the mainstream prices of coking coal in the domestic market have remained constant in the range of RMB 1,250-1,300/mt ($183-190/mt).

Against the cointinuing positive trend of coking coal market in China, various large-scale coal producers hiked their prices successively in recent days, with coal prices generally climbing up by RMB 50-100/mt ($7-15/mt). Thereby, the domestic coke market has been propped up by the price ascension in the coking coal market. Some coking enterprises have made tentative upward adjustments to their ex-factory prices, resulting in the certain climb recorded in market quotations in Hebei Province and eastern regions; while it remains to be observed whether mills can accept the price increase or not. Considering the sharp slump in the recent finished steel market, Chinese mills seem unwilling to increase the production costs by raising their purchase prices, which is expected to affect the confidence and optimism of coke producers to a great extent.

According to the latest statistics issued by the customs authority, China's coke exports reached 50,000 mt in the month of July, up 20,000 mt or 66.67 percent month on month. During the month in question, the average export price of coke was $373.90/mt, down $13.9/mt compared with the previous month. From January to July, the country's total coke exports amounted to 280,000 mt, down 7.99 million mt or 95.5 percent year on year.