During the week ending August 25, Chinese coke prices in the domestic market have moved down compared to the previous week, after lasting increases and previous stabilization. This has dragged down export offers for coke and worsened sentiments in the import coking coal market, where quotations have been relatively stable recently.
First-grade coke prices in Tangshan are at RMB 2,200/mt ($306/mt) ex-warehouse, moving down by RMB 110/mt ($15.3/mt) compared to August 18, according to SteelOrbis data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change (RMB/mt) |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
2,160 |
300.5 |
-110.0 |
-14.7 |
|
Zibo, Shandong |
2,350 |
326.9 |
-110.0 |
-14.7 |
||
|
Pingdingshan, Henan |
2,200 |
306.1 |
-110.0 |
-14.7 |
||
|
Tangshan |
2,200 |
306.1 |
-110.0 |
-14.7 |
||
|
Huaibei, Anhui |
2,250 |
313.0 |
-110.0 |
-14.7 |
||
|
Average |
2,232 |
310.5 |
-110.0 |
-14.7 |
All prices include 13 percent VAT.
During the given week, a round of price decline has been implemented, resulting in decent transaction activities on most coking plants’ side. On steelmakers’ side, the inventory of coke increased. Local coking coal prices mostly indicated a decreasing trend, improving coking plants’ profitability from cost side. The wait-and-see stance prevailed among market players following this round of price decreases. It is thought that coke prices in the Chinese domestic market will likely move sideways in the coming week.
As a result, in the export market, offers for ex-China CRS 65 coke have lost $5/mt more over the week, coming to $305-310/mt FOB with the same offers reported for ex-Indonesia coke. The trading has been weak so far, though market sources said that $305/mt FOB could work for a number of Asian buyers.
In the import coking coal segment, a deal for ex-Russia PCI was done at $145/mt CFR this week. The reference price for premium hard coking coal has remained at $245-250/mt CFR.
As of Friday, August 25, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,509/mt ($210/mt), up by RMB 95/mt ($13.2/mt) or 6.7 percent week on week. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,241/mt ($312/mt), increasing by RMB 121.5/mt ($17/mt) or 5.7 percent compared to August 18.
$1 = RMB 7.1881