Chinese steelmakers have continued to conduct active negotiations with Russian producers of coking coal due to their attractive prices compared to prices from North America. Russian suppliers, in their turn, have remained highly flexible, given their disadvantaged position in the global market due to economic sanctions.
SteelOrbis has learned that Russia-based Mechel has closed two fresh tenders for two cargoes of 21,000 mt of K10 coking coal to China at $255/mt CFR and $264/mt CFR, respectively. Earlier last week, a small lot of ex-Russia K10 coking coal was sold at $290/mt CFR to China.
The sentiments in the futures market, conversely, have improved this week. The market panic seen last week and stemming mostly from the slumping margins and weak demand seen last week has eased this week, with futures prices consequently bouncing back. Specifically, as of Tuesday, June 28, coking coal prices at Dalian Commodity Exchange (DCE) have settled at RMB 2,515.5/mt ($376/mt), increasing by RMB 227.5/mt ($34/mt) compared to the levels last Friday. Meanwhile, coke futures prices have increased likewise during the given period, to RMB 3,223/mt ($482/mt).
Given the mixed sentiments in the market, the second reduction of metallurgical coke prices in China was temporarily postponed.
$1 = RMB 6.69