During the week ending February 21, import coking coal quotations in China have moved up due to tight supply amid better demand as steelmakers have been gradually resuming production.
As of February 21, quotations of premium hard coking coal from Australia are at $169.5/mt CFR China, rising by $4/mt compared to last week. Hard coking coal prices are at $152/mt CFR, up $3/mt week on week. Chinese coal miners have been resuming production slowly, slower than the resumption in the coke and steel industry, resulting in tight supply and in some enterprises’ seeking import coking coal, which has pushed up prices.
Coke prices in Tangshan are at RMB 1,900/mt ($270.6/mt) ex-warehouse, remaining stable compared to last week, according to SteelOrbis’ data. More coke producers will resume production, which will increase supply of coke in the near future, while the increasing inventory levels in the steel market will exert a negative impact on demand for coke. Accordingly, coke prices will likely come under downward pressure in the short term.
Coke futures prices at Dalian Commodity Exchange (DCE) have declined by RMB 14.5/mt ($2.1/mt) or 0.77 percent as of Friday, February 21, compared to February 14.
$1 = RMB 7.021
