During the week ending January 12, metallurgical coke prices in the Chinese domestic market have mostly moved downwards, though remaining stable in Pingdingshan and Huaibei, while transaction activity in the overall market has been at low-to-medium levels. As of January 12, coke futures contract (1805) offers at Dalian Commodity Exchange closed at RMB 2,011/mt ($311/mt), down $8/mt week on week. Average coke prices in the local Chinese market are presented in the following table.
During the given week, coking plants’ capacity utilization rates have risen slightly, resulting in increased supply to the coke market and exerting a negative impact on coke prices. Coke producers’ profit margins are still at good levels and so they are eager to produce. Steelmakers have been seeking a cut of RMB 100/mt ($15.4/mt) in coke prices, while coke producers have opposed their request. Inventories of coke on the steelmakers’ side have declined slightly due to increases in blast furnace capacity utilization rates, while snowy weather conditions have negatively affected coke transportation. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) have decreased in the given week, which will likely weaken support for coke prices in the spot market. It is thought that coke prices will likely move down further in the coming week.
Product name |
Specification |
Place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Coke |
Second grade |
Hancheng, Shaanxi |
2,160 |
334 |
↓50 |
Zibo, Shandong |
2,250 |
348 |
↓50 |
||
Pingdingshan, Henan |
2,290 |
354 |
0 |
||
Tangshan |
2,250 |
348 |
↓50 |
||
Huaibei, Anhui |
2,350 |
364 |
0 |
||
Average |
2,260 |
350 |
↓30 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.46
