During the week ending December 18, import quotations in China have edged up for premium hard coking coal and hard coking coal, supported by stronger demand and higher prices for coke in the local market and the ongoing tightness of coal supply.
Quotations of coking coal from Canada have been at $180/mt CFR, though a deal for ex-US premium material has been reported at above $185/mt CFR. Ex-Russia hard coking coal prices are at $134/mt CFR, up $2/mt compared to last week.
The equivalent price of ex-Australia premium hard coking coal, which is banned in China now, is at $114/mt CFR China, keeping in line with the level recorded last week. Hard coking coal prices from Australia translate to $100/mt CFR.
Coke prices in Tangshan are at RMB 2,250/mt ($345/mt) ex-warehouse, moving up by RMB 50/mt ($7.6/mt) compared to that recorded in the previous week, according to SteelOrbis’ data.
During the given week, coking plants’ capacity utilization rates have declined amid production halts in Shanxi Province, bolstering coke prices. Currently, demand for coke is at decent levels as steel prices have increased. Approaching the end of the year, safety inspections at coal mines will be stricter, which may result in reduced output of coal and exert a positive impact on coke prices. It is thought that coke prices in the Chinese domestic market will increase in the coming week.
As of Friday, December 18, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,661/mt ($407/mt), increasing by RMB 149/mt ($22.8/mt) or 5.93 percent compared to December 11.
$1 = RMB 6.5315