During the week ending July 2, import quotations for coking coal in China have moved an overall uptrend amid the decline in local coal production against the backdrop of the 100th anniversary of the founding of the Communist Party of China (July 1). Moreover, ex-Australia FOB prices for coking coal have posted an even stronger increase, also supported by lower supply.
Quotations of premium coking coal from Canada are at $308/mt CFR China late this week, moving up by $5/mt compared to June 25, while lower grade coal from Russia has risen by $2/mt to $197/mt CFR, according to SteelOrbis’ figures.
Prices for premium hard coking coal from Australia are equivalent to $219/mt CFR China, up $13/mt compared to last week. A deal early this week was done at $190/mt FOB, and by the end of the week the deal price level has almost reached $200/mt FOB, while offers have come up to $210/mt FOB. Hard coking coal prices from Australia correspond to $171.5/mt CFR, up $10.5/mt compared to the previous week.
Coke prices in Tangshan are at RMB 2,720/mt ($422.6/mt) ex-warehouse, moving sideways compared to June 25, according to SteelOrbis’ data.
During the given week, coke prices have moved sideways amid decreasing capacity utilization rates at coking coal plants. The anniversary of the founding of the Communist Party of China (CPC) on July 1 has exerted a negative impact on coke production, bolstering prices to some extent. But the bigger impact has been on coking coal output, which has not fully resumed on July 2. Local coking coal prices may edge down as the supply shortage will ease in the coming few weeks.
As of Friday, July 2, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,641/mt ($408/mt), decreasing by RMB 186/mt ($21/mt) or 6.6 percent compared to June 25.
$1 = RMB 6.4712
