The recent lockdown in Tangshan in Hebei Province, the main steelmaking hub in China, following a sharp rise in Covid-19 cases has created certain obstacles in logistics, negatively affecting the circulation of coke supplies, while adding to market players’ uncertainties regarding the future price trend.
The negative sentiments which appeared in the futures market at the beginning of the current week have become positive by the end of the week. Meanwhile, in the spot market, coke prices in Tangshan have remained almost stable, at RMB 3,460/mt ($543/mt) ex-warehouse, moving sideways compared to March 18, according to SteelOrbis’ data.
In the futures market in China, as of Friday, March 25, coking coal prices at Dalian Commodity Exchange (DCE) have increased by 1.8 percent over the past week, to RMB 3,106/mt ($487/mt). Meanwhile, coke futures prices are at RMB 3,733.5/mt ($586/mt), rising by RMB 42.5/mt ($2.1/mt) or 1.15 percent compared to March 18.
In the export segment likewise, ex-China coke prices have remained at the levels of the previous week. Accordingly, blast furnace (BF) coke (CSR 62%) is available at $600/mt FOB, while BF coke (CSR 64/62%) is offered at $625/mt FOB.
$1 = RMB 6.3739