During the week ending September 17, import quotations for premium hard coking coal in China have shown an unbelievable surge of $84.5/mt, confirmed in a deal in the middle of the week. Domestic coke prices have also continued their gains, though at a more reasonable pace.
Prices for premium hard coking coal from North America have reached $560/mt CFR this week, up by $84.5/mt since last week, as a deal for 70,000 mt of premium ex-US material changed hands at this level. By the end of the week, offers are at $570/mt CFR at least. Lower quality ex-Russia coking coal is at $418/mt CFR, up $55/mt compared to September 10.
Sharp rises have been seen in the Australian export market. Quotations of premium hard coking coal from Australia were equivalent to $376.5/mt CFR China in the middle of the week, up $53/mt compared to last week. However, by the end of the week premium prices have increased to $380/mt FOB. Hard coking coal prices from Australia correspond to $286/mt CFR, up $47/mt compared to the previous week.
Coke prices in Tangshan are at RMB 4,160/mt ($645/mt) ex-warehouse, rising by RMB 200/mt ($31/mt) compared to September 10, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have continued their rising trend amid the declining capacity utilization rates on coking plants’ side and decreasing inventory levels. Demand for coke has also been negatively affected by production restrictions, while the increasing coking coal prices have bolstered coke prices from the cost side.
As of Friday, September 17, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 3,218/mt ($498.7/mt), decreasing by RMB 290/mt ($45/mt) or 8.27 percent compared to September 10.
$1 = RMB 6.4527