During the week ending September 8, local coke prices in China have remained stable compared to the previous week, but, given the increases in coking coal prices, market sources were waiting for an improvement next week. However, the sharp futures price fall on Friday and the bearishness in the steel market may result in negative sentiment returning to the market again.
First-grade coke prices in Tangshan are at RMB 2,200/mt ($305/mt) ex-warehouse, remaining stable compared to September 1, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/mt) |
Weekly Change（RMB/mt） |
Weekly Change（$/mt） |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0） |
Hancheng, Shaanxi |
2,160 |
299.4 |
0.0 |
-1.5 |
|
Zibo, Shandong |
2,350 |
325.7 |
0.0 |
-1.6 |
||
|
Pingdingshan, Henan |
2,200 |
304.9 |
0.0 |
-1.5 |
||
|
Tangshan |
2,200 |
304.9 |
0.0 |
-1.5 |
||
|
Huaibei, Anhui |
2,250 |
311.9 |
0.0 |
-1.6 |
||
|
Average |
2,232 |
309.4 |
0.0 |
-1.6 |
All prices include 13 percent VAT.
During the given week, coke prices in the Chinese domestic market have moved sideways amid the relatively balanced situation between supply and demand. Coking plants’ capacity utilization rates have decreased slightly, though remaining at high levels. Profitability of coking plants has not been good. Steelmakers have increased their molten iron production cuts slightly compared to the previous week, resulting in good demand for coke. Meanwhile, local coking coal prices have risen by RMB 150/mt ($21/mt), which will likely bolster coke prices from the cost side.
On September 8, offer prices of coke CSR65 in the export market have increased to $325-330/mt FOB, while last week they were at $305-310/mt FOB.
As of Friday, September 8, coking coal futures at Dalian Commodity Exchange (DCE) have settled at RMB 1,642/mt ($227.7/mt), up by RMB 16/mt ($2.2/mt) or 1.0 percent week on week, which indicated a sharp drop of 4.09 percent compared to the previous trading day (September 7). Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,304/mt ($319.6/mt), decreasing by RMB 20/mt ($2.8/mt) or 0.86 percent compared to September 1, which saw a sharp decline of 3.5 percent compared to the previous trading day.
$1 = RMB 7.215