During the week ending August 13, import quotations for hard coking coal in China have increased further as supply has remained tight, while demand has been healthy.
Quotations of premium hard coking coal coking coal from North America have increased to the level of $344/mt CFR, and a cargo of 75,000 mt of this grade material is heard to have been sold in the middle of the week at this level. The new price level is $15/mt higher compared to late last week. Offers for premium hard coking coal coking coal have increased above $350-355/mt CFR this week. Prices for lower grade coal from Russia are at $233/mt CFR, up $16/mt compared to August 6.
Demand has also been supporting Australian export prices. Premium hard coking coal prices from Australia are translating to $244.5/mt CFR China now, up $5/mt compared to last week. A deal at $222.5/mt FOB was done this week. Hard coking coal prices from Australia correspond to $185/mt CFR, up $2.0/mt compared to the previous week.
Apart from healthy demand for coking coal in China, supply has remained tight, supporting sentiments.
Coke prices in Tangshan are at RMB 2,840/mt ($438/mt) ex-warehouse, rising by RMB 120/mt ($18.5/mt) compared to August 6, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have continued their rising trend amid rising coking coal prices. Coking plants have been seeking to raise their coke prices due to high production costs. The declining inventory on downstream users’ side means they have been seeking to build up stocks, while the supply shortage has bolstered coke prices. It is expected that coke prices may edge up further in the coming week.
As of Friday, August 13, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 3,145/mt ($485/mt), increasing by RMB 165/mt ($25.5/mt) or 5.54 percent compared to August 6.
$1 = RMB 6.4799