During the week ending September 15, local coke prices in China have moved sideways compared to the previous week: while coking plants tried to raise their coke prices, though mainstream steelmakers have not accepted higher prices. Due to a mining incident, safety checks have been strict, resulting in tight supply of coking coal to the local market, which may bolster coke prices from the cost side.
First-grade coke prices in Tangshan are at RMB 2,200/mt ($305/mt) ex-warehouse, moving sideways compared to September 8, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
2,160 |
300.9 |
0.0 |
+1.5 |
|
Zibo, Shandong |
2,350 |
327.3 |
0.0 |
+1.6 |
||
|
Pingdingshan, Henan |
2,200 |
306.4 |
0.0 |
+1.5 |
||
|
Tangshan |
2,200 |
306.4 |
0.0 |
+1.5 |
||
|
Huaibei, Anhui |
2,250 |
313.4 |
0.0 |
+1.6 |
||
|
Average |
2,232 |
310.9 |
0.0 |
+1.6 |
All prices include 13 percent VAT.
During the given week, coke prices in the Chinese domestic market have remained stable amid the decreasing capacity utilization rates on the coking plants’ side. Though coking plants have attempted to increase coke prices by around RMB 110/mt, mainstream steelmakers did not respond. Local coking coal prices have moved up, increasing the production cost for coke, while this trend may continue in the near future due to the strict safety checks. It is thought that coke prices may edge up in the coming week.
On September 15, offer prices of coke CSR65 in the export market have decreased to $322-327/mt FOB, down $3/mt week on week. However, trading has been poor with only a few bids from traders heard at $310-314/mt FOB. Offers for ex-Indonesia CSR65 coke have also been heard, at $325/mt FOB this week, with no feedback from buyers.
As of Friday, September 15, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,822.5/mt ($254/mt), up by RMB 180.5/mt ($25.1/mt) or 11.0 percent week on week, up 2.5 percent compared to the previous trading day (September 14). Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,481.5/mt ($346/mt), increasing by RMB 177.5/mt ($24.7/mt) or 7.7 percent compared to September 8, which saw a rise of 2.06 percent compared to the previous trading day.
$1 = RMB 7.1786