During the given week, coke prices in the Chinese domestic market have moved sideways, while the fourth round of price hike has still been under negotiation. Currently, coking plants’ profitability has been quite good, thereby they have been willing to produce, which has been putting pressure on the market sentiments. Steelmakers’ demand for coke has been at decent level as their molten iron outputs have been at relatively high levels, but with the current declines in steel prices, buyers will resist any further increase in coke.
First-grade coke prices in Tangshan are at RMB 1,765/mt ($258/mt) ex-warehouse, moving sideways compared to May 15, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin |
Price（RMB/mt） | Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
1,665 |
243.5 |
0.0 |
+0.2 |
Zibo, Shandong |
1,800 |
263.3 |
0.0 |
+0.2 |
||
Pingdingshan, Henan |
1,650 |
241.3 |
0.0 |
+0.2 |
||
Tangshan |
1,765 |
258.2 |
0.0 |
+0.2 |
||
Huaibei, Anhui |
1,700 |
248.6 |
0.0 |
+0.2 |
||
Average |
1,716 |
251.0 |
0.0 |
+0.2 |
All prices include 13 percent VAT.
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
A9,S0.4,V19,G88 |
Linfen low-sulfur primary coking coal |
1,600 |
234.0 |
-20.0 |
-2.8 |
|
A10.5,S3,V25,G80 |
Lveliang high-sulfur primary coking coal |
1,276 |
186.6 |
-31.0 |
-4.4 |
|
A10,S1.8,V21,G90 |
Jinzhong medium-sulfur primary coal |
1,325 |
193.8 |
-5.0 |
-0.6 |
|
A12,S1.2,V37.G90 |
Linfen low-sulfur 1/3 coking coal |
1,230 |
179.9 |
0.0 |
+0.1 |
|
|
Average |
1,357.75 |
198.6 |
-14.0 |
-1.9 |
During the given week, coking coal prices have moved down amid producers’ relatively high capacity utilization rates. Cautious sentiments started to prevail among market players since the traditional offseason is approaching. The inventories of coking coal have been at relatively low levels, bolstering its prices to a certain degree. It is expected that coking coal prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
On May 22, offer prices of coke CSR65 in the export market have been at $260/mt FOB, remaining stable compared to May 15.
As of May 22, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,162.5/mt ($179/mt), decreasing by RMB 62.5/mt ($9.1/mt) or 5.1 percent since May 15, while decreasing by 3.69 percent compared to the previous trading day, May 21. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,731/mt ($253/mt), decreasing by RMB 76/mt ($11/mt) or 4.2 percent since May 15, while decreasing by 2.2 percent compared to the previous trading day, May 21.
$1 = RMB 6.8373
