During the week ending June 2, coke prices have moved down week on week as weak demand and lower local coking coal prices have been exerting pressure. Nevertheless, after the tenth successive domestic coke price cut, coking plants have been considering reducing their production, which may support the market in the coming weeks.
First-grade coke prices in Tangshan are at RMB 1,970/mt ($278/mt) ex-warehouse, edging down by RMB 100/mt compared to May 26, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng,Shaanxi |
1,930 |
272.1 |
-100.0 |
-14.8 |
|
Zibo ,Shandong |
2,120 |
298.8 |
-100.0 |
-14.9 |
||
|
Pingdingshan,Henan |
2,090 |
294.6 |
-100.0 |
-14.9 |
||
|
Tangshan |
1,970 |
277.7 |
-100.0 |
-14.8 |
||
|
Huaibei,Anhui |
2,190 |
308.7 |
-100.0 |
-14.9 |
||
|
Average |
2,060 |
290.4 |
-100.0 |
-14.9 |
including 13 percent VAT
During the given week, average coke prices in the Chinese domestic market have moved on an overall downtrend, reflecting the prevailing bearish sentiments among market players. Coking plants have started to plan maintenance works amid shrinking profitability. Since the hot summer season is approaching, demand for coke may slacken further. Currently, steelmakers’ outputs of melted iron is at relatively high levels, though they may decrease in the near future, and this would negatively affect the demand for coke. At the same time, local coking coal prices have edged down, weakening the support for coke prices from the cost side. It is expected that coke prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of Friday, June 2, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,276/mt ($180/mt), up by RMB 13/mt ($1.8/mt) week on week. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 1,991.5/mt ($281/mt), rising by RMB 1/mt ($0.14/mt) or 0.05 percent compared to May 26.
The price for ex-China 25-90 mm CSR 63/65 metallurgical coke has been reported at $295-300/mt FOB, versus $305/mt FOB and above last week.
$1 = RMB 7.0939