While local coke prices in China had moved down last week, the downtrend has halted this week amid a sharp rise in futures prices and concerns over local coking coal supply.
First-grade coke prices in Tangshan are at RMB 1,600/mt ($228/mt) ex-warehouse, moving down by RMB 55/mt ($7.8/mt) compared to December 26, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,500 | 213.9 | -55.0 | -7.1 |
| Zibo, Shandong | 1,635 | 233.1 | -55.0 | -7.1 | ||
| Pingdingshan, Henan | 1,485 | 211.7 | -55.0 | -7.1 | ||
| Tangshan | 1,600 | 228.1 | -55.0 | -7.1 | ||
| Huaibei, Anhui | 1,535 | 218.9 | -55.0 | -7.1 | ||
| Average | 1,551 | 221.2 | -55.0 | -7.1 |
All prices include 13 percent VAT.
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,510 | 215.3 | -90.0 | -12.1 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 1,109 | 158.1 | -74.0 | -10.0 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 1,186 | 169.1 | -45.0 | -5.8 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 1,140 | 162.6 | -50.0 | -6.6 | |
| Average | 1,236.25 | 176.3 | -64.8 | -8.6 |
The fourth round of declines in coke prices was seen in the Chinese domestic market in line with expectations. However, following the sharp rises in coke futures prices over the past few trading days, the expected fifth round of declines in coke prices has been delayed. Molten iron output has increased, resulting in improved demand for coke and bolstering prices to a certain degree. Most steelmakers have not started to build up winter coke stocks as they are still purchasing just in line with their needs. It is expected that coke prices in the Chinese domestic market will likely move sideways in the coming week.
During the given period, average coking coal prices in the Chinese domestic market decreased first, while rebounding later amid the significant increases seen in coking coal futures prices. Coal miners maintained normal production activities, resulting in relatively loose supply to the market despite rumors of a suspension of operations at mines in Shaanxi Province. Moreover, following recent big rises, coking coal futures prices may see downward corrections, which will weaken the support for coking coal prices. It is thought that coking coal prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
On January 9, offer prices of coke CSR65 in the export market are at $225-230/mt FOB, stable from December 26. Some deals for ex-Indonesia coke were reported at $220-222/mt FOB.
As of January 9, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,195.5/mt ($170.3/mt), increasing by RMB 80/mt ($11.4/mt) or 7.2 percent since December 26, while decreasing by 0.71 percent compared to the previous trading day, January 8. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,748/mt ($249/mt), rising by RMB 28/mt ($4/mt) or 1.6 percent since December 26, while declining by 1.83 percent compared to the previous trading day, January 8.
$1 = RMB 7.0128
