Optimism prevails in Chinese domestic coke market

During the week ending December 6, metallurgical coke prices in the local Chinese market have mostly been stable, though prices in northwestern China have indicated slight rises. Transaction activity has remained at good levels. As of December 6, coke futures contract (1405) offers at Dalian Commodity Exchange closed at RMB 1,618/mt ($264/mt), unchanged week on week.
 
In the given week, the purchasing activities of steel mills, which have been at normal levels, have provided support for the stability of domestic coke prices. Some steel mills in the northeastern region of China intended to seek lower prices of coke, but were opposed by local coke mills. However, traders in northeastern China state that prices of high-quality coke may trend up due to tight supply. Meanwhile, steel mills in China are likely to accelerate purchasing activities in order to replenish their stocks for the winter. In addition, due to price rises in the iron ore market, players in the local coke market hold an optimistic view of the future prospects of the market. It is thought that the Chinese coke market will likely firm up in the coming week.