Latest situation in local Chinese coke market

During the week ending December 12, metallurgical coke prices in the Chinese domestic market have remained on a stable trend, while transaction activity in the overall market has continued to be at decent levels. As of December 12, coke futures contract (1505) offers at Dalian Commodity Exchange closed at RMB 1,044/mt ($170/mt), up $1/mt compared to the same contract week on week. Local coke prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
 
During the given week, although the overall weakness of the finished steel market has exerted some negative pressure on coke prices, the continuing decent demand observed for coke has provided support for coke prices. Recently, domestic steelmaker Shagang increased its settlement prices for coke by RMB 10-20/mt ($1.6-3.2/mt), reflecting the positive demand situation. Meanwhile, some coking coal producers have slightly raised their coking coal prices, providing cost support for the coke market. It is expected that coke prices in the Chinese domestic market will continue their stable trend in the coming week.