During the week ending August 6, import quotations in China have edged up for premium hard coking coal as supply has remained tight and there are no expectations of a sharp increase in supply in the near future. Demand in China has weakened as customers have seen lower consumption and do not want to pay higher for coking coal.
Prices for premium hard coking coal from Canada have increased to $329/mt CFR, up $11.5/mt compared to July 30. Quotations of lower quality ex-Russia coal have lost $5/mt, coming to $217/mt CFR.
Quotations of premium hard coking coal from Australia have increased as well amid alternative demand. They correspond to $239.5/mt CFR China, up $1.5/mt compared to last week. Hard coking coal prices from Australia are equivalent to $183/mt CFR, up $3.0/mt compared to the previous week
Coke prices in Tangshan are at RMB 2,720/mt ($421/mt) ex-warehouse, rising by RMB 120/mt ($18.6/mt) compared to July 30, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have edged up amid increasing local coking coal prices. The higher production costs have pushed up coke prices. However, the demand and supply situation has not seen big changes, which exert a negative impact on coke prices. It is thought that coke prices may edge up further in the coming week amid the rising trend in coking coal prices due to the shortage of supply.
As of Friday, August 6, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,980/mt ($461/mt), increasing by RMB 37/mt ($5.7/mt) or 1.26 percent compared to July 30.
$1 = RMB 6.4625
