During the week ending September 5, local coke prices in China have remained stable compared to August 29 as mills’ attempts to cut prices after seven rounds of increases have failed. Also, after the gains in futures prices on Friday, positive sentiments have again returned to the market.
First-grade coke prices in Tangshan are at RMB 1,670/mt ($235/mt) ex-warehouse, remaining stable compared to August 29, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,610 | 226.6 | 0.0 | -0.1 |
| Zibo, Shandong | 1,745 | 245.6 | 0.0 | -0.1 | ||
| Pingdingshan, Henan | 1,595 | 224.5 | 0.0 | -0.1 | ||
| Tangshan | 1,670 | 235.0 | 0.0 | -0.1 | ||
| Huaibei, Anhui | 1,645 | 231.5 | 0.0 | -0.1 | ||
| Average | 1,653 | 232.6 | 0.0 | -0.1 |
All prices include 13 percent VAT.
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,420 | 199.8 | -60.0 | -8.5 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,050 | 147.8 | -25.0 | -3.6 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,052 | 148.0 | -24.0 | -3.4 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,150 | 161.8 | 0.0 | -0.1 | |
| Average | 1,168 | 164.4 | -27.3 | -3.9 |
Coke prices in the Chinese domestic market have moved sideways. Some steelmakers in Hebei Province attempted to reduce coke purchase prices, but without success. The tight supply of coke bolstered prices to a certain degree. On September 5, coke futures prices increased by 4.71 percent from the previous day, which will positively affect prices in the spot market. At the same time, coking coal futures prices have seen bigger rises, which will provide solid support for coke prices. Moreover, anti-involution regulations may bolster market sentiments firmly, though market players stated that they will also pay close attention to the actual release of demand in the near future. It is expected that coke prices in the Chinese domestic market will rebound in the coming week.
During the given week, average coking coal prices in the Chinese domestic market have seen declines amid the weak demand from downstream users. On September 5, coking coal futures prices saw a sharp rise of 6.33 percent amid rumors saying that detailed anti-involution rules would be released at the weekend, which bolstered market sentiments and pushed up ferrous metal futures prices. Meanwhile, market players think there may be a round of stock replenishment ahead of the National Day holiday (October 1-8), which will exert a positive impact on coking coal prices in the near future.
Offer prices of coke CSR65 in the export market were at $230-235/mt FOB early this week and reached at least $237/mt FOB on September 5.
As of September 5, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,158.5/mt ($163.1/mt), decreasing by RMB 7.5/mt ($1.1/mt) or 0.65 percent since August 29, while up 6.33 percent compared to the previous trading day, September 4. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,646.5/mt ($232/mt), rising by RMB 3.5/mt ($0.5/mt) or 0.2 percent since August 29, while up 4.71 percent compared to the previous trading day, September 4.
$1 = RMB 7.1064
