Chinese steelmakers have continued to benefit from the difficulties of Russia caused by economic sanctions. Specifically, Steelorbis has learned about a fresh sale of 21,000 mt of ex-Mechel K10 coking coal to China at $213.5/mt CFR. The price is around $40-50/mt lower compared to the levels in auctions for the same material closed at the end of June. The freight for a cargo of such a volume from Russia to China is said to be about $30-35/mt.
The ongoing pessimism in the finished steel market in China has continued to weigh on the expectations of Chinese steelmakers towards prices in coming deals. Specifically, most market sources assume that prices have not bottomed out yet, given the current business environment. Besides, active talk about China's possible cancellation of its import ban on ex-Australia coal with a consequent increase in supply have increased the bearish prospects for coking coal prices in the future. Specifically, last Friday, the foreign ministers of Australia and China met for the first time since 2019, which may be considered as the attempt to reset a relationship marred in recent years by diplomatic tensions and economic restrictions.
Meanwhile, in the futures market, as of Wednesday, July 13, coking coal prices at Dalian Commodity Exchange (DCE) have settled at RMB 2,118/mt ($315/mt), decreasing by RMB 88/mt ($14/mt) compared to the levels last Friday. Meanwhile, coke futures prices have declined by RMB 156/mt ($25/mt) during the given period to RMB 2,780/mt ($413/mt).
$1 = RMB 6.7299