During the week ending October 23, import coking coal quotations in China have moved down further amid the strict customs clearance policy in China, which has negatively affected the global market.
Quotations of premium hard coking coal from Australia are at $126/mt CFR China, down $7/mt compared to last week. Hard coking coal prices are at $114/mt CFR, down $4/mt compared to the previous week.
Coke prices in Tangshan are at RMB 2,050/mt ($307/mt) ex-warehouse, moving up RMB 50/mt ($7.5/mt) compared to the previous week, according to SteelOrbis’ data.
During the given week, coking plants’ capacity utilization rates have risen slightly and remain at relatively high levels, while the utilization rates will likely edge down in the coming week as some capacity in Shanxi Province will be eliminated by the end of this month. Demand for coke from steelmakers has improved as steelmakers’ blast furnace capacity utilization has been at high levels amid rising finished steel prices. Recent safety checks at coal mines will likely reduce coal supply, which will bolster coal prices and provide support for coke prices accordingly.
As of Friday, October 23, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,118.5/mt ($317.6/mt), increasing by RMB 16/mt ($2.4/mt) or 0.76 percent compared to October 16.
$1 = RMB 6.6703
