The absence of a firm positive outlook for the finished steel segment has caused Chinese steelmakers to remain cautious towards new bookings of import coking coal in anticipation of lower offers. Above all, importers are seeking to take advantage of the unfavorable position of Russian suppliers due to their isolation caused by sanctions. Consequently, this week import coking coal trading in China has stalled to some extent, with most buyers holding back in anticipation of cheaper offers. In particular, the major buyer of Russian coking coal is seeking in coming deals to get for Kolmar's Inagli $220-230/mt CFR and for Deni Deep $270-280/mt CFR, down $40/mt and $20-30/mt from offers from a supplier in the previous week.
Meanwhile, the expectations of price levels for ex-SUEK and ex-Raspadskaya coking coal have been voiced at $200/mt CFR.
In the metallurgical coke segment, a second price reduction was ultimately accepted. Coke prices in Tangshan have declined by RMB200/mt week on week to RMB 2,860/mt ($427/mt) ex-warehouse.
Concurrently, prices in the futures market have trended in the same direction. Accordingly, by the end of the current week, coking coal prices at Dalian Commodity Exchange (DCE) have settled at RMB 2,206/mt ($329/mt), down RMB 74.5/mt ($11/mt) week on week. Meanwhile, coke futures prices have declined by RMB 73/mt ($11/mt) to RMB 2,936/mt ($438/mt).
$1 = RMB 6.7049