During the past week, the ninth round of hikes in coke prices has been implemented in the Chinese domestic market. Moreover, coking plants have attempted to ask for a tenth round of price hikes, though more time is needed to confirm whether such increases will be accepted.
First-grade coke prices in Tangshan are at RMB 2,115/mt ($310.8/mt) ex-warehouse, moving up by RMB 55/mt compared to June 26, according to SteelOrbis’ data.
Lately, local coking coal prices have indicated downward corrections, while there has been some shortage of coking coal supplies, bolstering prices to a certain degree. Outputs of coke have declined, while some downstream users have been cautious as regards concluding coke purchases at the current high prices, resulting in slight increases in inventories. The poor performance of the steel market may negatively affect the demand for coke in the coming period. It is expected that coke prices in the Chinese domestic market will trend sideways to upward in the coming week.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,995 | 293.2 | 55.0 | 8.6 |
| Zibo, Shandong | 2,130 | 313.0 | 55.0 | 8.6 | ||
| Pingdingshan, Henan | 1,980 | 291.0 | 55.0 | 8.6 | ||
| Tangshan | 2,115 | 310.8 | 55.0 | 8.6 | ||
| Huaibei, Anhui | 2,030 | 298.3 | 55.0 | 8.6 | ||
| Average | 2,050 | 301.2 | 55.0 | 8.6 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 2,020 | 296.3 | -30.0 | -4.4 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,649 | 241.9 | -7.0 | -1.0 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,721 | 252.5 | -20.0 | -2.9 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,230 | 180.4 | 0.0 | 0.0 | |
| Average | 1,655 | 242.8 | -14.3 | -2.1 |
During the given week, coking coal prices in the Chinese domestic market have edged down slightly. Resumption of production has proceeded slowly, making it hard to alleviate the short-term tightness of domestic coking coal supply, and may bolster coking coal prices to a certain degree. The continuous rise in coke prices provides solid support for coking coal prices. However, the weak performance of the steel market has exerted a negative impact on coking coal demand. It is thought that coking coal prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
On July 3, offer prices of coke CSR65 in the export market are at $293/mt FOB, moving sideways compared to June 26.
As of June 26, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,282/mt ($188/mt), increasing by RMB 33.5/mt ($4.9/mt) or 2.7 percent since June 26, while rising by 1.34 percent compared to the previous trading day, July 2. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,938/mt ($285/mt), decreasing by RMB 8/mt ($1.2/mt) or 0.4 percent since June 26, while increasing by 1.71 percent compared to the previous trading day, July 2.
$1 = RMB 6.8047
