During the week ending June 20, local coke prices in China have moved sideways compared to June 13, but the fourth round of price cuts is expected to be fully implemented early next week. After that the market may take a pause in downtrend.
First-grade coke prices in Tangshan are at RMB 1,265/mt ($176/mt) ex-warehouse, remaining stable compared to June 13, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,225 | 170.9 | 0.0 | 0.2 |
| Zibo, Shandong | 1,415 | 197.4 | 0.0 | 0.2 | ||
| Pingdingshan, Henan | 1,265 | 176.4 | 0.0 | 0.2 | ||
| Tangshan | 1,265 | 176.4 | 0.0 | 0.2 | ||
| Huaibei, Anhui | 1,315 | 183.4 | 0.0 | 0.2 | ||
| Average | 1,297 | 180.9 | 0.0 | 0.2 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,180 | 164.6 | 0.0 | 0.2 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 813 | 113.4 | -10.0 | -1.3 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 832 | 116.0 | -20.0 | -2.7 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 880 | 122.7 | 0.0 | 0.1 | |
| Average | 926.25 | 129.2 | -7.5 | -0.9 |
During the given week, average coking coal prices in the Chinese domestic market have continued the downtrend amid increasing production outputs. Since coke prices are anticipated to decrease in the near future, the demand for coking coal will slacken, which will negatively affect its prices. Meanwhile, the oversupply in steel market in the traditional off-season may weaken the steel prices, while likely drag down coking coal prices.
Coke prices in the Chinese domestic market remained stable in the given week. However, some steelmakers attempted to reduce the purchasing prices for coke, signaling the fourth round of coke price decline may be implemented next Monday. The inventory of coke has decreased slightly over the past week, while still standing at relatively high level, negatively affecting its prices. It is expected that coke prices in the Chinese domestic market will edge down in the coming week, while they might move sideways after that.
On June 20, offer prices of coke CSR65 in the export market have been at $195-200/mt FOB, stable compared to June 13.
As of June 20, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 795/mt ($110.4/mt), increasing by RMB 20.5/mt ($2.8/mt) or 2.65 percent since June 13, while up 1.08 percent compared to the previous trading day, June 19. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,384.5/mt ($192/mt), increasing by RMB 35/mt ($4.9/mt) or 2.6 percent since June 13, while up 1.21 percent compared to the previous trading day, June 19.
$1 = RMB 7.1695