During the week ending April 14, coke prices have seen a further downward movement in China, triggering a further decline in import premium hard coking coal prices as well as in PCI prices.
First-grade coke prices in Tangshan are at RMB 2,670/mt ($389/mt) ex-warehouse, moving down by RMB 50/mt compared to April 7, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng,Shaanxi |
2,630 |
383.3 |
-100.0 |
-13.0 |
Zibo ,Shandong |
2,820 |
411.0 |
-50.0 |
-5.6 |
||
Pingdingshan,Henan |
2,590 |
377.5 |
-50.0 |
-5.7 |
||
Tangshan |
2,670 |
389.2 |
-50.0 |
-5.7 |
||
Huaibei,Anhui |
2,690 |
392.1 |
-50.0 |
-5.7 |
||
Average |
2,680 |
390.6 |
-60.0 |
-7.1 |
including 13 percent VAT
During the given week, coke prices have continued their downtrend, though at a slower declining pace after a drop by RMB 100/mt the week before. Domestic coal prices have decreased, weakening the support for coke prices from the cost side. At the same time, inventory of coke has increased as steelmakers have slowed down purchasing activities, while this will continue in the near future, which will continue to negatively affect coke prices. Following the two-step price cut in coke prices, buyers still expect further price declines. It is expected that coke prices in the Chinese domestic market will edge down in the coming week.
The tradable level for ex-Australia premium low-volatile hard coking coal has slipped to $285/mt CFR at the highest for May laycan, according to sources, down by $10/mt over the past week. Some sources believe that firm bids are expected at below $280/mt CFR.
In addition, fresh offers for ex-Russia PCI have been reported at $170-175/mt CFR China, down by around $20/mt since late March.
As of Friday, April 14, coking coal futures (main contract shifted to jm2309) at Dalian Commodity Exchange (DCE) have settled at RMB 1,550.5/mt ($226/mt), down 4.85 percent week on week. Meanwhile, coke futures prices (main contract shifted to j2309) at Dalian Commodity Exchange (DCE) are at RMB 2,344/mt ($342/mt), decreasing by RMB 107/mt ($15.6/mt) or 4.4 percent compared to April 7.
$1 = RMB 6.8606