During the week ending April 30, import quotations for coking coal in China have increased as some deals at higher levels have been done. This has followed the continued rising trend in the local coke market in China. At the same time, low demand for ex-Australia coking coal has put pressure on prices from this destination, while the ban on Australian coal in China remains in effect.
Quotations of premium hard coking coal from Canada have reached $227.5/mt CFR China, up by $4.5/mt from the previous week. An increase happened after a deal for ex-US premium material at $225/mt CFR earlier in the week. Ex-Russia lower quality coking coal prices are at $173/mt CFR, edging up by $8/mt compared to April 23.
At the same time, prices for premium hard coking coal from Australia were translating to $131.5/mt CFR China, down $1.0/mt compared to last week. FOB prices have softened as demand for Australian coal has been weak. Hard coking coal prices from Australia are equivalent to $114.5/mt CFR, down $1.5/mt compared to the previous week.
Coke prices in Tangshan are at RMB 2,300/mt ($355.6/mt) ex-warehouse, moving up by RMB 200/mt ($31/mt) compared to April 23, according to SteelOrbis’ data.
During the given week, coking producers’ capacity utilization rates in China have decreased slightly due to the production restrictions amid environmental protection measures, resulting in shrinking supply of coke and bolstering prices. Meanwhile, steelmakers’ capacity utilization rates have increased, with the demand for coke rising. The inventory of coke has been at relatively low levels, which will provide solid support for prices in the near future.
As of Friday, April 30, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,606.5/mt ($403/mt), increasing by RMB 15/mt ($2.3/mt) or 0.58 percent compared to April 23.
$1 = RMB 6.4672