Minor decreases in the Chinese coke market

During the past week, the Chinese metallurgical coke market has recorded some slight downward movements. The rising finished steel market caused some coke producers to increase their coke prices slightly; however, market prices showed some signs of softening due to weak demand.

The coke transaction volume in central and southern China has not been good. Coke inventories at mills are high, and coke market prices have generally dropped. Steel mills have indicated that coke supply in the central and southern Chinese markets is at sufficient levels. Coke prices in eastern Chinese districts have decreased, and some steel mills have concluded coke purchases in the past week. Steel mills in central and southern China have purchased coke from the provinces of Shanxi, Hebei and Henan in the past week. It is expected coke prices will trend downward in the rest of April. Steel mills in northern China have recently reduced their finished steel prices and so have sought to push down prices of raw materials such as coke and iron ore in order to lower costs. At the same time, northeastern steel mills report good inventory levels, equivalent to enough supplies for about 15-20 days.

Grade 2 coke prices in the market was almost the same as in the previous week, at $275-315/mt. Recently, quotations in the Huaibei district of Anhui Province have been at $298/mt, with quotations in Shanghai at $313/mt. Recently, coke inventory in Hebei has been normal, at about 15 days' supply. It is expected that China's coke market will trend downward in the coming period.