New stimulus measures to boost the economy in the wake of the Covid-19 lockdowns have continued to boost sentiment among Chinese steelmakers, who have been ready to accept higher prices for raw materials, including imported coking coal.
Specifically, early this week, two tenders for ex-Russia coking coal were closed at higher prices. In particular, following a booking of a cargo of K10 coking coal produced by Russian company Mechel at $255/mt CFR, Chinese customers have purchased another cargo of K10 coking coal at $271.10/mt CFR. The material in both deals is destined to be shipped in June. Besides, a cargo of low-volatility pulverized coal injection (PCI) was traded at $220/mt CFR, SteelOrbis has learned. “They [Russian companies] always take their chance,” a representative of a Japanese company commented.
Furthermore, Mechel is said to have floated new tenders for shipment of 21,000 mt of K10 coking coal, 21,000 mt of low-volatile PCI and 21,000 mt of anthracite, with laycan being destined for June 11-15. The producer is expected to collect bids until Friday, June 10.
Meanwhile, in the futures market, at Dalian Commodity Exchange (DCE) as of Thursday, June 9, coking coal futures prices have increased by 2.1 percent week on week to RMB 2,872.5/mt ($430/mt), while coke futures prices have dropped by 1.1 percent to RMB 3,627/mt ($543/mt) in the same period.
$1 = RMB 6.6811