During the week ending October 20, local coke prices in China have moved sideways. Downstream steelmakers’ profitability has not been good, so mills have been unwilling to accept further rises in coke prices.
First-grade coke prices in Tangshan are at RMB 2,420/mt ($337/mt) ex-warehouse, moving sideways compared to October 13, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
2,380 |
331.5 |
0.0 |
-0.1 |
|
Zibo, Shandong |
2,570 |
357.9 |
0.0 |
-0.1 |
||
|
Pingdingshan, Henan |
2,420 |
337.0 |
0.0 |
-0.1 |
||
|
Tangshan |
2,420 |
337.0 |
0.0 |
-0.1 |
||
|
Huaibei, Anhui |
2,470 |
344.0 |
0.0 |
-0.1 |
||
|
Average |
2,452 |
341.5 |
0.0 |
-0.1 |
including 13 percent VAT
During the given period, finished steel prices have edged down, while cautious sentiments have prevailed among market players, exerting a negative impact on the coke market. Downstream steelmakers have been unwilling to accept further rises in coke prices, resulting in stable movement in the given week. Coking plants’ capacity utilization rates are at relatively low levels. At the same time, local and import coal prices have edged down, weakening the support for coke prices from the cost side. It is thought that coke prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
On October 20, prices of coke CSR65 in the export market are at $345-354/mt FOB, down $5-6/mt compared to targets on October 13. A deal was rumored at the higher end of the range early in the week, though the tradable level by the end of the week has been assessed at not above $345/mt FOB.
As of Friday, October 20, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,702/mt ($237/mt), down by RMB 29.5/mt ($4.1/mt) or 1.7 percent week on week, which decreasing by 0.61 percent compared to the previous trading day, October 19. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,316.5/mt ($323/mt), decreasing by RMB 35.5/mt ($4.9/mt) or 1.5 percent compared to October 13, indicating a decrease of 0.88 percent compared to the previous trading day.
$1 = RMB 7.1793