During the week ending May 16, local coke prices in China have decreased compared to May 9 as supply exceeded demand after one round of price increases and after the unsuccessful second round of hikes last week.
First-grade coke prices in Tangshan are at RMB 1,375/mt ($191/mt) ex-warehouse, moving down by RMB 55/mt compared to May 9, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,335 | 185.6 | -55.0 | -7.2 |
| Zibo, Shandong | 1,525 | 212.0 | -55.0 | -7.2 | ||
| Pingdingshan, Henan | 1,375 | 191.1 | -55.0 | -7.2 | ||
| Tangshan | 1,375 | 191.1 | -55.0 | -7.2 | ||
| Huaibei, Anhui | 1,425 | 198.1 | -55.0 | -7.2 | ||
| Average | 1,407 | 195.6 | -55.0 | -7.2 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,250 | 173.8 | -40.0 | -5.2 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 940 | 130.7 | -2.0 | 0.0 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 970 | 134.8 | 6.0 | 1.1 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 960 | 133.4 | 0.0 | 0.3 | |
| Average | 1,030 | 143.2 | -9.0 | -0.9 |
During the given week, average coking coal prices in the Chinese domestic market have moved down amid increasing inventory levels. Cautious sentiments have prevailed among market players, exerting a negative impact on the market. Coking plants have been unwilling to build up high stocks, weakening the support for coking coal prices.
Coke prices have seen decreases as steelmakers have implemented price cut for coke purchases. At present, most coking plants are incurring slight losses, while their capacity utilization rates have remained stable, resulting in increasing inventories. Moreover, the decreasing coke futures prices have negatively affected coke prices in the spot market. At the same time, declining coking coal prices have exerted a negative impact on coke prices from the cost side. It is expected that coke prices in the Chinese domestic market will likely soften in the coming week.
On May 16, offer prices of coke CSR65 in the export market are at $224/mt FOB, remaining unchanged compared to May 9.
As of May 16, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 852.5/mt ($118.4/mt), decreasing by RMB 25/mt ($11/mt) or 2.85 percent since May 9, while down 3.84 percent compared to the previous trading day, May 15. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,445.5/mt ($201/mt), decreasing by RMB 1/mt ($0.14/mt) or 0.07 percent since May 9, while down 1.93 percent compared to the previous trading day, May 15.
$1 = RMB 7.1938