In the light of positive sentiments towards future developments, which have been mounting since the new package of support measures was rolled out in China, Russian coking coal suppliers have managed to increase deal prices once again. However, the duration of the uptrend remains to be seen. “I expect from the end of the month all infrastructure projects in China will be fully running and we'll see a much better Chinese market,” an international trader stated. “Chinese prices are firmer now. However, the global market is not doing well. China is not able to be strong on its own,” a Chinese trader stated. Besides that, fresh Covid-19 alerts in Shanghai and Beijing have renewed concerns with regard to demand in China, threatening to derail the economy's reopening.
One way or another, Chinese steelmakers have continued to accept higher prices in bookings of ex-Russia coking coal. Specifically, a fresh tender of a Russia-based Mechel for 21,000 mt of K10 coking coal, with June 11-15, was closed at $305/mt CFR China. It is almost $34/mt higher compared to the level in the previous tender. A cargo of low-volatility pulverized coal injection (PCI) was booked at $220/mt CFR, up $5/mt compared to the previous trade. The company is said to have floated a new tender for three cargoes, in particular, for two cargoes of K10 coking coal, with 15-19 June laycan and 17-21 June laycan, respectively, for 21,000 mt and 25,000 mt of anthracite, with 15-19 June laycan. The deadline for bids is June 13, SteelOrbis has learned.
In addition, ex-Russia Deni Deep coking coal is said to have changed hands at $340/mt CFR China lately. Ex-Russia Inagli coking coal has been traded at $300-310/mt CFR China, with the price having almost rebounded to May levels. The prices for coking coal produced by Russia’s Raspadskaya Coal Company have firmed up to $240/mt CFR China in the latest transactions, while at the beginning of June the material was offered mostly at $220-240/mt CFR China.
Having enjoyed significant gains in sales to China, Russian coking coal suppliers are said to be to a large extent sold out until July.
In the meantime, coke prices in the domestic market in China have been settled at RMB 3,160/mt ($472/mt) ex-warehouse, moving down by RMB 100/mt ($15/mt) compared to May 27, according to SteelOrbis’ data.
Meanwhile, in the futures market, at Dalian Commodity Exchange (DCE) as of Friday, June 10, coking coal futures prices have decreased by 0.3 percent from the previous day to RMB 2,863.5/mt ($428/mt), while coke futures prices have increased by 0.7 percent to RMB 3,652/mt ($546/mt) in the same period.
On the Singapore Exchange (SGX), coking coal prices for June contracts have settled at $390.33/mt, down $15/mt from previous levels.
$1 = RMB 6.6941