During the week ending May 21, import quotations for hard coking coal in China have posted another round of increases, supported by further rises in domestic coke prices. Nevertheless, by the end of the week the upward sentiment has eased as the government is going to curb raw material price rises.
Prices for premium hard coking coal from Canada have reached $275/mt CFR this week, moving up by $21.5/mt compared to May 14. At the same time, lower-quality Russian coking coal has been priced at $182/mt CFR, up by $2/mt from last week. Import coking coal prices in China have been bolstered by demand early this week and by reduced supply in the local market, while the import options have also remained limited.
In the Australian export coking coal market, prices have also moved down, supported by demand from Southeast Asia. Quotations of premium hard coking coal from Australia are equivalent to $147/mt CFR China, up $10.5/mt compared to last week. Hard coking coal prices correspond to $125/mt CFR, up $7/mt compared to the previous week.
Coke prices in Tangshan are at RMB 2,840/mt ($442/mt) ex-warehouse, moving up by RMB 240/mt ($37/mt) compared to May 14, according to SteelOrbis’ data.
During the given week, coke prices have moved up further in China amid the rising capacity utilization rates on the coking plants’ side, relatively low inventory levels, and sufficient orders. Though macroeconomic policy has exerted a negative impact on raw material prices, bullish sentiments have prevailed among coke producers due to decreasing inventory levels.
As of Friday, May 21, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,371/mt ($369/mt), decreasing by RMB 243.5/mt ($37.9/mt) or 9.3 percent compared to May 14.
$1 = RMB 6.43
