During the week ending December 19, local coke prices in China have remained stable compared to December 12, but a number of steelmakers are seeking a third round of price cuts, which could be implemented next week.
First-grade coke prices in Tangshan are at RMB 1,710/mt ($242.4/mt) ex-warehouse, moving sideways compared to December 12, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,610 | 228.2 | 0.0 | 0.3 |
| Zibo, Shandong | 1,745 | 247.3 | 0.0 | 0.3 | ||
| Pingdingshan, Henan | 1,595 | 226.1 | 0.0 | 0.3 | ||
| Tangshan | 1,710 | 242.4 | 0.0 | 0.3 | ||
| Huaibei, Anhui | 1,645 | 233.2 | 0.0 | 0.3 | ||
| Average | 1,661 | 235.4 | 0.0 | 0.3 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,600 | 226.8 | 100.0 | 14.4 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,220 | 172.9 | 0.0 | 0.5 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,231 | 174.5 | 0.0 | 0.5 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,190 | 168.7 | 0.0 | 0.5 | |
| Average | 1,310.25 | 185.7 | 25.0 | 4.1 |
Some steelmakers in Hebei Province plan to cut their purchase prices for coke, effective as of December 22, while mainstream steelmakers have not followed this course of action yet. Inventories of coke are at relatively low levels, positively affecting prices. However, molten iron outputs have continued to decrease, weakening the demand for coke. It is expected that coke prices in the Chinese domestic market will edge down in the coming week.
During the given week, average coking coal prices in the Chinese domestic market have moved sideways as well. The relatively high inventories have been negatively affecting coking coal prices, while some miners are carrying out maintenance works, which may bolster prices to a certain degree. Meanwhile, downstream users will likely build up stocks for the winter season, which will exert a positive impact on coking coal prices.
On December 19, offer prices of coke CSR65 in the export market have been at $235/mt FOB, decreasing by $2.5/mt on average compared to December 12. But Indonesian coke offers have slid to $230/mt FOB.
As of December 19, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,108/mt ($157/mt), increasing by RMB 91.5/mt ($13/mt) or 9.0 percent since December 12, while remaining stable compared to the previous trading day, December 18. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,597.5/mt ($226/mt), rising by RMB 122.5/mt ($17.4/mt) or 8.3 percent since December 12, while up 1.36 percent compared to the previous trading day, December 18.
$1 = RMB 7.055