During the week ending March 26, import quotations for coking coal in China have moved down slightly, following further declines in the domestic coke prices. The production cuts announced in Tangshan have put pressure on raw material demand and overall market sentiment.
Quotations of coking coal from Canada are $216/mt CFR, down $2.5/mt compared to March 19, while ex-Russia hard coking coal is priced at $160/mt CFR, stable after the previous decrease.
Quotations of premium hard coking coal from Australia equivalent to $134/mt CFR China, up $2/mt compared to last week. Hard coking coal prices are at $118.5/mt CFR, up $2.5/mt compared to last week.
Coke prices in Tangshan are at RMB 2,100/mt ($321/mt) ex-warehouse, moving down by RMB 100/mt ($15.3/mt) compared to March 19, according to SteelOrbis’ data.
During the given week, coking producers’ capacity utilization rates have indicated slight declines amid the production restrictions in Shanxi and Tangshan, though they are still at relatively high levels. Due to the production restrictions on blast furnaces, inventory of coke has risen, exerting a negative impact on prices. It is thought that coke prices will likely see further declines in the coming week.
As of Friday, March 26, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,211.5/mt ($338/mt), decreasing by RMB 41.5/mt ($6.34/mt) or 1.84 percent compared to March 19.
$1 = RMB 6.5376