During the past week, the eighth round of coke price hikes has been implemented in the Chinese domestic market. Most coking plants have maintained previous production capacity utilization rates, while sales activities have continued smoothly, resulting in relatively low inventories. However, increasing coking coal prices have reduced coking plants’ profitability, while some coking plants have incurred losses. Steelmakers’ molten iron outputs have been at relatively high levels, bolstering the demand for coke. It is thought that coke prices in the Chinese domestic market will increase in the coming week as a ninth round of price increases has been proposed in a few major provinces by the end of the week.
First-grade coke prices in Tangshan are at RMB 2,060/mt ($302.2/mt) ex-warehouse, moving up by RMB 55/mt compared to June 16, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,940 | 284.6 | 55.0 | 7.8 |
| Zibo, Shandong | 2,075 | 304.4 | 55.0 | 7.8 | ||
| Pingdingshan, Henan | 1,925 | 282.4 | 55.0 | 7.8 | ||
| Tangshan | 2,060 | 302.2 | 55.0 | 7.8 | ||
| Huaibei, Anhui | 1,975 | 289.7 | 55.0 | 7.8 | ||
| Average | 1,995 | 292.7 | 55.0 | 7.8 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 2,050 | 300.7 | 70.0 | 10.2 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,656 | 242.9 | 97.0 | 14.2 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,741 | 255.4 | 131.0 | 19.2 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,230 | 180.4 | 0.0 | 0.0 | |
| Average | 1,669.25 | 244.9 | 74.5 | 10.9 |
During the given week, coking coal prices in the Chinese domestic market have indicated rises as production capacity utilization rates have not regained normal levels. The shrinking supply of coking coal has bolstered prices. It is expected that coking coal prices in the Chinese domestic market will continue their rising trend in the coming week.
On June 26, offer prices of CSR65 coke in the export market are at $293/mt FOB, increasing by $8/mt compared to June 16.
As of June 26, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,248.5/mt ($183/mt), decreasing by RMB 94.5/mt ($14/mt) or 7.0 percent since June 16, while rising by 0.12 percent compared to the previous trading day, June 25. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,946/mt ($285.5/mt), decreasing by RMB 137.5/mt ($20.2/mt) or 6.6 percent since June 16, while decreasing by 0.15 percent compared to the previous trading day, June 25.
$1 = RMB 6.8166
