During the given week, the fifth round of hikes in coke prices has been implemented in the Chinese domestic market, while a sixth round of price hikes is on the way. Due to increasing raw material prices, some coking plants have reduced their outputs of coke, resulting in low inventories and exerting a positive impact on prices. However, molten iron output in China has edged down slightly compared to the previous week, though remaining at relatively high levels.
First-grade coke prices in Tangshan are at RMB 1,875/mt ($275.1/mt) ex-warehouse, moving up by RMB 55/mt compared to May 29, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,775 | 260.4 | 55.0 | 8.1 |
| Zibo, Shandong | 1,910 | 280.2 | 55.0 | 8.1 | ||
| Pingdingshan, Henan | 1,760 | 258.2 | 55.0 | 8.1 | ||
| Tangshan | 1,875 | 275.1 | 55.0 | 8.1 | ||
| Huaibei, Anhui | 1,810 | 265.6 | 55.0 | 8.1 | ||
| Average | 1,826 | 267.9 | 55.0 | 8.1 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,920 | 281.7 | 320.0 | 47.0 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,543 | 226.4 | 190.0 | 27.9 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,435 | 210.5 | 110.0 | 16.2 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,230 | 180.5 | 0.0 | 0.1 | |
| Average | 1,532 | 224.8 | 155.0 | 22.8 |
During the given week, coking coal prices have moved up sharply amid production halts which exceeded market players’ expectation. The supply of coking coal has been tight, bolstering prices firmly. Coking coal miners have sped up resumption of production recently, though it may be hard to resume to the normal output levels in the short term and so supply may continue to be tight. A further price hike for coke will provide solid support for demand for coking coal. It is expected that coking coal prices in the Chinese domestic market will edge up in the coming week.
On June 5, offer prices of coke CSR65 in the export market have been at $275/mt FOB, rising by $5/mt compared to May 29.
As of June 5, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,459/mt ($214/mt), increasing by RMB 173.5/mt ($25/mt) or 13.5 percent since May 29, while rising by 2.6 percent compared to the previous trading day, June 4. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 2,041.5/mt ($299/mt), increasing by RMB 138.5/mt ($20/mt) or 7.3 percent since May 29, while up 0.22 percent compared to the previous trading day, June 4.
$1 = RMB 6.8157
