The lingering uncertainties regarding the future developments in the steel industry have continued to deter Chinese steelmakers from active purchases of import coking coal, in particular, due to long lead time. Trading of ex-Russia coking coal has slowed down to some extent amid delivery chain disruptions. “There is not too much activity. Everyone [among Russian coal suppliers] is much behind with the delivery schedule. I think we will see some activity not earlier than next week,” a major international trader stated. “We haven't heard any fresh offers from Russia yet,” an India-based trader echoed the sentiments. Ex-US offers of premium hard low-volatility coking coal, Blue Cree No.7, for delivery in November and Oak Grove, for loading in October have been heard at $335/mt CFR China, unchanged compared to the previous week, while customers are reported to be ready to pay not higher than $290-300/mt CFR.
In the domestic market, prices for prime quality coking coal with ash content below 10.5 percent have risen by $13.5/mt over the week, to RMB 2,250/mt ($324.7/mt) ex-works.
The second round of price declines in the metallurgical coke segment has not been seen yet, with most market participants having been holding a wait-and-see stance. Meanwhile, the capacity utilization rates on coking plants have remained relatively high.
First-grade coke prices in Tangshan are at RMB 2,820/mt ($406.9/mt) ex-warehouse, moving sideways compared to September 9, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
2,830 |
408.3 |
0.0 |
-1.2 |
|
Zibo, Shandong |
2,970 |
428.5 |
0.0 |
-1.3 |
||
|
Pingdingshan, Henan |
2,730 |
393.9 |
0.0 |
-1.2 |
||
|
Tangshan |
2,820 |
406.9 |
0.0 |
-1.2 |
||
|
Huaibei, Anhui |
2,830 |
408.3 |
0.0 |
-1.2 |
||
|
Average |
2,836 |
409.2 |
0.0 |
-1.2 |
All prices include 13 percent VAT.
As of Friday, September 16, coking coal futures prices at Dalian Commodity Exchange (DCE) have risen by 5.7 percent over the past week, to RMB 2,013/mt ($290.45/mt), while coke futures prices have been settled at RMB 2,622/mt ($378.4/mt), up by RMB 73.5/mt ($10.6/mt) or 2.9 percent compared to September 9.
$1 = RMB 6.9305