With the lack of downstream demand, Chinese steelmakers have maintained their attempts to lower their production costs, in particular, prices for metallurgical coke. Meanwhile, lower-priced offers for ex-Russia coking coal to China have continued to provide room for manoeuvering for metallurgical coke producers in China. Consequently, compared to May 6, coke prices in Tangshan have declined by RMB 400/mt ($59/mt), to RMB 3,460/mt ($509/mt) ex-warehouse.
Meanwhile, offers for ex-Russia K10 coking coal and Inagli coal have been heard at $300/mt CFR, while Deni Deep coking coal is available at $350/mt CFR. As SteelOrbis reported earlier, in late April ex-Russia K10 coking coal totaling around 50,000 mt has been booked in China at $322-327/mt CFR. Despite almost a $200/mt price difference compared to the levels valid for ex-North premium hard coking coal, Chinese customers have remained cautious in bookings of ex-Russia material, assuming that prices may fall further. Meanwhile, ex-Russia anthracite offers have been heard at $250-280/mt CFR China, with no interest so far.
As of Friday, May 13, coal futures prices at Dalian Commodity Exchange (DCE) are RMB 2574/mt ($383/mt), decreasing by 5.54 percent within the past week. Meanwhile, coke futures prices are at RMB 3,340/mt ($491.2/mt), down by RMB 118/mt ($17.4/mt) or 3.4 percent compared to May 6.
$1 = RMB 6.7898
