During the week ending December 31, ex-Australia coking coal prices have increased after Hay Point Coal Terminal in Queensland stopped operations due to adverse weather conditions, while import quotations in China have remained under pressure, but may follow the upward trend in January.
Quotations of premium hard coking coal from Australia are equivalent to $369/mt CFR China, up $7/mt over the past week. The price is around $355/mt on FOB basis.
Meanwhile, quotations of coking coal from Canada and Russia are respectively at $333/mt and $240/mt CFR, down $3.5/mt and up $5/mt compared to December 24. But offers have been limited as suppliers are preparing for an increase, while demand from China has been slack.
Coke prices in Tangshan are at RMB 2,660/mt ($417.2/mt) ex-warehouse, moving up by RMB 100/mt ($15.7/mt) compared to December 24, according to SteelOrbis’ data.
During the given week, coke prices in China mostly moved sideways amid increasing capacity utilization rates. Coking plants have tried to raise coke prices, while only a few steelmakers in Tangshan have accepted the rises. The weak performance in finished steel prices has negatively affected the coke market. However, local coking coal prices have rebounded, which will bolster coke prices from the cost side.
As of Friday, December 31, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,934/mt ($460.2/mt), decreasing by RMB 234.5/mt ($36.8/mt) or 7.4 percent compared to December 24.
$1 = RMB 6.3757
