During the week ending February 2, metallurgical coke prices in the Chinese domestic market have mostly moved downwards, while transaction activity in the overall market has been at low-to-medium levels. As of February 2, coke futures contract (1805) offers at Dalian Commodity Exchange closed at RMB 2,045/mt ($326/mt), up $4/mt week on week. Average coke prices in the local Chinese market are presented in the following table.
During the given week, most domestic steelmakers chose to consume their inventories of coke, resulting in slack market demand for the raw material. Meanwhile, given the declines seen in coke prices, coke producers’ profitability has shrunk, while their inventories have increased as they have been operating at high capacity utilization levels. Accordingly, coke producers have been more willing to reduce their prices in line with pressure from steelmakers. It is thought that coke prices in the Chinese domestic market may move on a slight downtrend in the coming week.
|
Product name |
Specification |
Place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
|
Coke |
Second grade |
Hancheng, Shaanxi |
1,860 |
296 |
0 |
|
Zibo, Shandong |
1,950 |
310 |
0 |
||
|
Pingdingshan, Henan |
2,040 |
324 |
↓100 |
||
|
Tangshan |
1,920 |
305 |
↓60 |
||
|
Huaibei, Anhui |
2,150 |
342 |
↓100 |
||
|
Average |
1,984 |
315 |
↓5 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.29