Fueled by the upbeat outlook regarding developments in the steel sector in China, suppliers of ex-Russia coking coal have attempted to increase their offer prices. In particular, this week Russia-based company Kolmar has reportedly started testing the market with prices $10-15/mt higher than in the previous week. Accordingly, the company's Deni Deep brand coking coal is said to be available at $200-205/mt CFR, while Inagli coking coal is offered at $180-185/mt CFR. “The market is a bit better this week, but it is difficult to stay positive with the ongoing production cuts. I am not sure about the next developments,” an international trader commented regarding the current situation. “September is a peak period, so prices will be going up, but slowly,” a Chinese source stated. Meanwhile, offers for ex-Russia low-volatility pulverized coal injection (PCI), with laycan in the first half of August have been heard at $165/mt CFR.
Meanwhile, ex-US offers of low-volatility coking coal Blue Creek No.7, which have decreased by around $5-10/mt week on week to $305-310/mt CFR, have remained unworkable for Chinese customers.
Chinese exporters of metallurgical coke have become bullish likewise. Accordingly, the current offers for 25-90 mm of BF grade metallurgical coke (62/60% CSR) have been heard at $400/mt FOB, up $20/mt during the past week.
Meanwhile, on Wednesday, August 3, coking coal prices at Dalian Commodity Exchange (DCE) have settled at RMB 2,212.5/mt ($327/mt), down RMB 44/mt ($7/mt) from the previous day. Meanwhile, coke futures prices have remained almost stable at RMB 2,954.5/mt ($437/mt) in the given period.
$1 = RMB 6.75067