During the week ending June 25, import quotations for coking coal in China have moved on an overall uptrend, hitting a record high for the past few years. Tight supply, caused by a reduction in allocation in the local market and the ongoing lack of import offers are behind this increase.
Quotations of premium hard coking coal from Canada have reached $303/mt CFR late this week, up by $20/mt compared to June 18. Ex-Russia lower quality coal is priced at $195/mt CFR, increasing by $10/mt week on week.
Prices for premium hard coking coal from Australia have also moved up, equivalent to $206/mt CFR China, up $7/mt compared to last week. Hard coking coal prices from Australia correspond to $161/mt CFR, up $5/mt compared to the previous week.
Coke prices in Tangshan are at RMB 2,720/mt ($422.6/mt) ex-warehouse, moving sideways compared to June 18, according to SteelOrbis’ data.
During the given week, coke prices have remained stable amid declining capacity utilization rates at coking coal plants. As the centenary of the founding of the Communist Party of China (CPC) is approaching, production restrictions may continue or be increased, which will bolster coke prices. At the same time, coking coal prices have risen amid decreasing supply due to safety inspections, which will provide support for import coking coal and coke prices.
As of Friday, June 25, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,827/mt ($437/mt), increasing by RMB 133.5/mt ($21/mt) or 4.96 percent compared to June 18.
$1 = RMB 6.4744
