During the week ending October 28, the mainstream offers of coke in most regions of China have followed a stable trend. However, in Shanxi Province some coking plants have been forced to lower their ex-mill offers. Meanwhile, the main coke futures contract price at Dalian Commodity Exchange has risen by $9.6/mt week on week, with the price closing at RMB 1,980/mt ($312/mt).
Prices of coke in local Chinese markets
Specification |
Place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change（$/mt） |
Second grade |
Hancheng,Shanxi |
1,800 |
284 |
0 |
0.0 |
Zibo ,Shandong |
2,000 |
316 |
0 |
0.0 |
|
Pingdingshan,Henan |
2,000 |
316 |
0 |
0.0 |
|
Shanghai |
2,060 |
325 |
0 |
0.0 |
|
Huaibei,Anhui |
1,980 |
313 |
0 |
0.0 |
|
Average |
1,968 |
311 |
0 |
0.0 |
Note：$1= RMB 6.33
As of October 28, the average spot price of second grade metallurgical coke in China stands at $311/mt, indicating no great change compared to the previous week. As the finished steel market continues to trend down, steel mills are under cost pressure and are on the verge of incurring losses. Thus, some steel mills are seeking reductions in coke prices. In Shanxi Province where supplies are at decent levels, some coke producers are giving way to steel mills in negotiations. On the other hand, the plummeting iron ore market has also exerted a pressure on the coke market. Meanwhile, some steel mills have begun to start overhaul work, resulting in a shrinkage of demand for coke. In the context of inventory replenishment and the support of coking coal costs, domestic coke prices in China are still at high levels. However, market insiders think that, as inventory replenishment comes to an end, and also given the continuous decrease in finished steel prices, steel producers are getting more eager to reduce their purchase prices of coke. It is thought that prices of coke in China will probably indicate a slight decline in the near future.