During the week ending August 8, local coke prices in China have moved up further compared to August 1 and a further increase is expected next week, with coal mining reductions expected to be sustained.
First-grade coke prices in Tangshan are at RMB 1,540/mt ($215.7/mt) ex-warehouse, moving up by RMB 55/mt compared to August 1, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng,Shaanxi | 1,500 | 210.1 | 55.0 | 8.0 |
| Zibo, Shandong | 1,635 | 229.1 | 55.0 | 8.1 | ||
| Pingdingshan,Henan | 1,485 | 208.0 | 55.0 | 8.0 | ||
| Tangshan | 1,540 | 215.7 | 55.0 | 8.1 | ||
| Huaibei, Anhui | 1,535 | 215.0 | 55.0 | 8.1 | ||
| Average | 1,539 | 215.6 | 55.0 | 8.1 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,480 | 207.3 | -20.0 | -2.4 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,053 | 147.5 | -1.0 | 0.1 | |
| A10,S1.8,V21,G90 | Jinzhongmedium-sulfur primary coal | 1,105 | 154.8 | 47.0 | 6.8 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,150 | 161.1 | 0.0 | 0.3 | |
| Average | 1,197 | 167.7 | 6.5 | 1.2 |
Coke prices in the Chinese domestic market have edged up, while major coking plants have attempted to raise coke prices further today, August 8, which may be effective as of August 11. Though coke prices have seen five rounds of hikes, the pace of the increases has not been as fast as that in coking coal prices. Coking plants have chosen to maintain relatively low inventory levels as many of them are operating at break-even point. Since some steelmakers have not replenished their inventories of coke, it is expected that coke prices in the Chinese domestic market will see further increases in the coming week amid the expecting stock replenishments.
During the given week, average coking coal prices in the Chinese domestic market have seen rises amid the ongoing safety inspections in Shanxi Province. The anticipated production halts at coal mines in Linfen and Lvliang have bolstered market sentiments. Blast furnaces’ melted iron outputs will move sideways, which will provide support for demand for coking coal. It is expected that coking coal prices will fluctuate within a limited range in the coming week.
On August 8, offer prices of coke CSR65 in the export market are at $220/mt FOB, moving up by $10/mt compared to August 1.
As of August 8, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,227/mt ($172/mt), increasing by RMB 134.5/mt ($18.8/mt) or 12.3 percent since August 1, while up 0.49 percent compared to the previous trading day, August 7. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,653.5/mt ($232/mt), rising by RMB 68.5/mt ($9.6/mt) or 4.3 percent since August 1, while down 0.27 percent compared to the previous trading day, August 7.
$1 = RMB 7.1382
