Having remained skeptical towards any positive changes in the near future in the steel industry, Chinese steelmakers have continued to seek lower production costs. In particular, although domestic metallurgical coke prices in China declined last Friday, on Monday Chinese steelmakers have actively started to discuss the fourth cut in prices, citing their huge losses. Specifically, following the latest price revision, the current coke prices in Tangshan are at around RMB 3,000-3,100/mt ($445-460/mt) ex-works, down RMB 200/mt ($30/mt) from the previous levels valid last week. In the export segment, the suppliers have also become more flexible with customers, though activity remains sluggish. The current export offers for 25-90mm of BF grade metallurgical coke (62/60% CSR) have been heard at $420/mt FOB, down around $70/mt in the past two weeks.
Meanwhile, in the coking coal segment, Chinese customers have also managed to get lower prices. Specifically, a new sale of ex-Russia Mechels' K10 coking coal was fixed at $211/mt CFR China, versus $213.5/mt CFR China in the previous booking. The volume in the deal in question may be 21,000 mt as usual. Furthermore, 30,000 mt of ex-Russia pulverised coal injection (PCI) has reportedly been booked to China at $190/mt CFR China, down $6/mt from the deal price in early July.
In the futures market, on the contrary, prices have rebounded to some extent. Accordingly, on Monday July 18, coking coal prices at Dalian Commodity Exchange (DCE) have settled at RMB 2,095.5/mt ($311/mt), up RMB 131/mt ($20/mt) since Friday July 15. Meanwhile, coke futures prices have increased by RMB 168/mt ($26/mt) to RMB 2,711/mt ($402/mt), though bidding has been opened at lower levels compared to those fixed on Friday.
$1 = RMB 6.7408