During the week ending May 5, coke prices in the local Chinese market have seen further declines, signaling still bearish market conditions and slow demand. Also, some declines have been reported in the local Indian market. However, given the recent rebound in ex-Australia coking coal prices, the downtrend in the global coke market may stop or at least slow down in the coming weeks.
First-grade coke prices in Tangshan are at RMB 2,270/mt ($328.5/mt) ex-warehouse, moving down by RMB 100/mt compared to April 28, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
2,230 |
322.7 |
-100.0 |
-13.8 |
|
Zibo, Shandong |
2,420 |
350.2 |
-100.0 |
-13.8 |
||
|
Pingdingshan, Henan |
2,240 |
324.1 |
-100.0 |
-13.8 |
||
|
Tangshan |
2,270 |
328.5 |
-100.0 |
-13.8 |
||
|
Huaibei, Anhui |
2,340 |
338.6 |
-100.0 |
-13.8 |
||
|
Average |
2,300 |
332.8 |
-100.0 |
-13.8 |
All prices include 13 percent VAT.
During the given week, coke prices in the Chinese domestic market continued their declining trend amid the prevailing bearish sentiments among market players. In addition, the demand for coke has been slack due to steelmakers’ production cuts. Lately, steel prices have declined continuously, while steelmakers’ profits have diminished. At the same time, domestic coal prices have also indicated a decreasing trend, weakening the support for coke prices from the cost side. It is thought that coke prices in the Chinese domestic market will likely edge down further in the coming week. However, by the end of the month prices will stabilize, market sources believe.
As of Friday, May 5, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,352/mt ($196/mt), declining by RMB 33/mt ($4.8/mt) or down 2.4 percent week on week. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,140.5/mt ($310/mt), decreasing by RMB 8.5/mt ($1.2/mt) or 3.96 percent compared to April 28.
In India, the price for BF grade 60 mm and above coke is still at INR 39,000/mt ($477/mt) ex-works, but on Friday some deals have started to emerge at INR 38,000/mt ($465/mt) ex-works.