During the week ending June 27, local coke prices in China have undergone their fourth round of declines. After this and considering the drop in local coking coal supply, coke producers have implemented output cuts, which, however, are unlikely to cause a trend reversal in the short term.
First-grade coke prices in Tangshan are at RMB 1,210/mt ($169/mt) ex-warehouse, moving down by RMB 55/mt ($7.7/mt) compared to June 20, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) | Weekly Change ($/mt) |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0) | Hancheng, Shaanxi | 1,170 | 163.3 | -55.0 | -7.5 |
| Zibo, Shandong | 1,360 | 189.9 | -55.0 | -7.5 | ||
| Pingdingshan, Henan | 1,210 | 168.9 | -55.0 | -7.5 | ||
| Tangshan | 1,210 | 168.9 | -55.0 | -7.5 | ||
| Huaibei, Anhui | 1,260 | 175.9 | -55.0 | -7.5 | ||
| Average | 1,242 | 173.4 | -55.0 | -7.5 |
All prices include 13 percent VAT.
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price (RMB/mt） | Price ($/mt) | Weekly Change (RMB/mt） | Weekly Change ($/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,180 | 164.7 | 0.0 | 0.2 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 828 | 115.6 | 15.0 | 2.2 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 833 | 116.3 | 1.0 | 0.3 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 850 | 118.7 | -30.0 | -4.1 | |
| Average | 922.75 | 128.8 | -3.5 | -0.4 |
During the given week, average coking coal prices in the Chinese domestic market have fluctuated within a limited range. Some coal mines have halted production, reducing outputs of coking coal and bolstering prices. However, demand for finished steel has been slack, which negatively affects the coking coal market. It is thought that coking coal prices in the Chinese domestic market will move sideways in the coming week.
Following four rounds of price declines, coking plants have cut production, easing the pressure from the supply side to a certain degree. However, inventory of coke has still risen, which may result in more production halts in the coming period. Finished steel prices have edged down, while bearish sentiments have prevailed among market players amid the widespread rainy weather and hot temperatures. It is thought that coke prices in the Chinese domestic market will edge down after some pause.
On June 27, offer prices of coke CSR65 in the export market are at $195/mt FOB, versus $195-200/mt FOB to June 20.
As of June 27, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 847.5/mt ($118.4/mt), increasing by RMB 52.5/mt ($7.3/mt) or 6.6 percent since June 20, while up 4.89 percent compared to the previous trading day, June 26.
$1 = RMB 7.1627
