During the week ending July 9, import quotations for coking coal in China have been stable compared to the previous week and market sources believe that some declines are possible in the near future amid expectations of lower crude steel production in the second half of the year, which will reduce demand for the raw material.
Prices for premium hard coking coal from Canada and lower quality coking coal from Russia are at $308/mt CFR and $197/mt CFR, remaining stable compared to July 2, respectively.
Meanwhile, quotations of premium hard coking coal from Australia are equivalent to $224.5/mt CFR China, up $5.5/mt compared to last week. Hard coking coal prices are at $175/mt CFR, up $3.5/mt compared to the previous week. Better demand from China and higher tender prices have been supporting ex-Australia prices.
Coke prices in Tangshan are at RMB 2,720/mt ($420/mt) ex-warehouse, remaining stable compared to July 2, according to SteelOrbis’ data.
During the given week, coke prices have remained stable amid increasing capacity utilization rates at coking plants due to the resumption of production since July 2. The increasing trend in coke inventory exerted a negative impact on prices. Demand for coke has slackened, which will weaken the support for prices. It is thought that coke prices may edge down in the coming week.
As of Friday, July 9, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,494.5/mt ($385/mt), decreasing by RMB 147/mt ($227/mt) or 5.6 percent compared to July 2.
$1 = RMB 6.4755