During the week ending June 11, import quotations for coking coal in China have been fluctuating within a limited range after the rises recorded last week, as no new deals have been heard in the premium segment over the past week. At the same time, demand from alternative destinations has provided further support for export coking coal prices from Australia.
Quotations of coking coal from Canada are at $282.5/mt CFR, down marginally by $0.5/mt over the past week, while prices of lower grade coking coal from Russia are at $185/mt CFR, moving up by $1/mt compared to June 4.
Ex-Australia premium hard coking coal prices have posted strong increases amid demand from South America and some interest from Southeast Asia. As a result, the premium hard coking coal price is equivalent to $188.5/mt CFR China now, up $10.5/mt from last week. Hard coking coal prices from Australia correspond to $151/mt CFR, up $7/mt from the previous week.
Coke prices in Tangshan are at RMB 2,720/mt ($426/mt) ex-warehouse, moving sideways compared to June 4, according to SteelOrbis’ data.
During the given week, coke prices in China have remained stable amid rumors about production restrictions for coking plants in the near future. Steelmakers have had to build up stocks instead of asking for declines in coke prices. However, supply of coke has been more or less sufficient amid high capacity utilization rates. Meanwhile, supply of local coking coal has been tight, bolstering coke prices. It is thought that coke prices may fluctuate within a limited range in the coming week.
As of Friday, June 11, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,721.5/mt ($426/mt), increasing by RMB 185.5/mt ($29/mt) or 7.3 percent compared to June 4
$1 = RMB 6.3856
