This week import coking coal prices in China have hit a new high with the price rise for premium material exceeding $20/mt amid tight supply and surging coke prices in the domestic market.
Prices for ex-North America coking coal have reached $366.5/mt CFR on Friday, up $22.5/mt compared to August 13. A deal done for ex-US premium hard coking coal was done at $365/mt CFR during the week and the current offers are all starting above $370/mt CFR. The ex-Russia lower quality coking coal price is at $270/mt CFR, hiking by $37/mt over the past week. Coking coal production in Shanxi has remained reduced and some more accidents have been reported, which signals that the supply shortage will continue for a longer time.
Quotations of ex-Australia coking coal have also been supported by possible developments in China, even those sales are only to other markets. Premium hard coking coal offers from Australia are equivalent to $248.5/mt CFR China, up $4/mt compared to last week. Hard coking coal prices are at $187/mt CFR, up $2.0/mt compared to the previous week.
Coke prices in Tangshan have surged to RMB 3,080/mt ($474/mt) ex-warehouse, rising by RMB 240/mt ($37/mt) compared to August 13, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have risen further as coking coal prices have been hitting their highest level. Coking plants’ capacity utilization rates have increased, while inventories have declined, bolstering coke prices. It is expected that coke prices may move up further in the coming week.
As of Friday, August 20, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,830.5/mt ($435.6/mt), decreasing by RMB 54.5/mt ($8.4/mt compared to August 13.
$1 = RMB 6.4984