During the week ending November 25, domestic coke prices in China have moved up as steel mills in most regions accepted increases amid higher coking coal prices and some positive expectations regarding government support of the economy. However, further rises are very questionable, taking into account the still slow demand for steel. Ex-China coke prices for overseas buyers have increased also, but by a smaller amount.
First-grade coke prices in Tangshan are at RMB 2,730/mt ($383/mt) ex-warehouse on average, moving up by RMB 110/mt from the previous level or $14.1/mt.
During the given week, coke prices in China have moved on an upward trend, which has resulted in improved profitability for coking plants, while increasing coking coal prices have contributed to the rises in production costs. The spreading Covid-19 pandemic in many regions of China has exerted a negative impact on the production and transportation of coke, which has provided support for coke prices. It is expected that coke prices in the Chinese domestic market will likely edge up in the coming week, while steelmakers are expected to resist further rises in coke prices.
As of Friday, November 25, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,806/mt ($393/mt), increasing by RMB 19.5/mt ($2.7/mt) or 0.7 percent compared to November 18.
In the export market, ex-China metallurgical coke (CSR 65/63%) offers have been voiced at $410-415/mt FOB, up from mainly $410/mt FOB seen a week ago. Ex-China BF coke (62/60% CSR) has been offered at $395-400/mt FOB, up by $5/mt over the past ten days. The recent increase in official offers for coke from China have not been supported by demand as customers have still been asking for discounts.
$1 = RMB 7.1339