During the past week, local coke prices in China have remained stable, with the attempted tenth round of price hikes not taking place. Most coking plants maintained normal production activities, while the inventories of some of them increased slightly. After nine consecutive rounds of price hikes, coking plants have seen some recovery in their profitability, yet rising costs have continued to suppress further margin expansion. Recently, outputs of molten iron have declined, weakening the support for demand for coke, which may cause steelmakers to try to reduce coke purchasing prices. It is expected that coke prices in the Chinese domestic market will move sideways in the coming week.
First-grade coke prices in Tangshan are at RMB 2,115/mt ($311.3/mt) ex-warehouse, remaining stable compared to July 10, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,995 | 293.7 | 0.0 | +0.3 |
| Zibo, Shandong | 2,130 | 313.6 | 0.0 | +0.3 | ||
| Pingdingshan, Henan | 1,980 | 291.5 | 0.0 | +0.3 | ||
| Tangshan | 2,115 | 311.3 | 0.0 | +0.3 | ||
| Huaibei, Anhui | 2,030 | 298.8 | 0.0 | +0.3 | ||
| Average | 2,050 | 301.8 | 0.0 | +0.3 |
All prices include 13 percent VAT.
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 2,020 | 297.4 | 0.0 | +0.3 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,593 | 234.5 | -61.0 | -8.8 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,563 | 230.1 | -17.0 | -2.3 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,230 | 181.1 | 0.0 | +0.2 | |
| Average | 1,601.5 | 235.8 | -19.5 | -2.7 |
During the given week, coking coal prices in the Chinese domestic market have edged down. Mainstream coal miners have maintained normal production activities, resulting in slightly rising inventories. Demand for coking coal has been slack as more steelmakers have implemented maintenance works. Steelmakers’ profitability has declined, which may lead to declines in coke prices. In this context, buyers have been unwilling to conclude purchases of coking coal. It is thought that coking coal prices in the Chinese domestic market will likely soften in the coming week.
On July 17, offer prices of coke CSR65 in the export market are at $293/mt FOB, remaining unchanged compared to July 10.
As of July 17, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,260.5/mt ($186/mt), increasing by RMB 3/mt ($0.4/mt) or 0.2 percent since July 10, while declining by 0.28 percent compared to the previous trading day, July 16. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,864/mt ($274.5/mt), decreasing by RMB 49/mt ($7.2/mt) or 2.6 percent since July 10, while declining by 0.35 percent compared to the previous trading day, July 16.
$1 = RMB 6.7934
