During the week ending June 4, import quotations for hard coking coal in China have moved on an overall rising trend even despite lower prices for domestic coke.
Restocking demand was seen in China’s coking coal market early this week, which together with the still limited supply have pushed prices up.
Prices for premium hard coking coal from Canada have reached $283/mt CFR, moving up by $8/mt over the past week. A deal for ex-US hard coking coal has been done at $275/mt CFR, which translates to over $280/mt CFR for premium quality material. Ex-Russia lower quality coking coal has been priced at $184/mt CFR, up $2/mt compared to May 28.
Better demand has been seen for ex-Australia coking coal too over the past week. As a result, quotations of premium hard coking coal from Australia correspond to $178/mt CFR China, up $16/mt compared to last week. Hard coking coal prices are equivalent to $144/mt CFR, up $9/mt compared to the previous week.
Coke prices in Tangshan are at RMB 2,720/mt ($424/mt) ex-warehouse, moving down by RMB 120/mt ($18.7/mt) compared to May 28, according to SteelOrbis’ data. During the given week, coke prices have declined amid sufficient supply and increasing inventory on the steelmakers’ side. Market players expect further declines in coke prices. However, coking coal prices have been at high levels, which will provide support to coke prices.
As of Friday, June 4, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,536/mt ($396/mt), increasing by RMB 105.5/mt ($16.5/mt) or 4.34 percent compared to May 28.
$1 = RMB 6.4072
