During the week ending October 22, import quotations for imported coking coal in China have fluctuated within a limited range due to still tight supply, even though futures prices for coal and coke have fallen sharply this week.
Quotations of coking coal from North America are at $610/mt CFR, versus $608-610/mt CFR last week. Most offers have increased to $615-620/mt CFR and suppliers are excluding the possibility of any visible price cuts in the near future due to limited allocation.
Lower grade ex-Russia coal is at $435/mt CFR, remaining stable compared to October 15.
In the Australian export market, prices for premium hard coking coal are equivalent to $428.5/mt CFR China, down $1.5/mt compared to last week. Hard coking coal prices are at $350/mt CFR, up $5/mt compared to the decreases recorded in the previous week.
Coke prices in Tangshan are at RMB 4,160/mt ($644/mt) ex-warehouse, moving sideways compared to October 15, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have moved sideways amid the declining capacity utilization rates at coking plants. Inventory levels of coke have decreased, bolstering prices. However, steelmakers have been seeking to reduce purchasing prices for coke amid the declining trend of steel prices. Coking coal prices have increased in the local market, and the season for stock replenishment is approaching, which will exert a positive impact on prices. It is thought that coke prices may edge down slightly in the coming week.
As of Friday, October 22, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 3,564/mt ($557/mt), decreasing by RMB 541.5/mt ($84.6/mt) or 13.2 percent compared to October 15.
$1 = RMB 6.4032
