During the week ending August 27, import quotations for hard coking coal in China have reached a new high, breaking the $400/mt CFR mark for premium material from North America. The trend is unlikely to change drastically in the near future, sources believe, as it is supported by tight supply of coking coal in both the local and import markets, while local coke prices in China are still on the rise.
Prices for premium hard coking coal from the US and Canada have reached $407/mt CFR, rising by $40.5/mt compared to August 20. A deal for 75,000 mt of premium material was signed in the middle of this week at this level. The lower quality Russian coal price is at $303/mt CFR, up by $33/mt over the week. There has been a lack of options for Chinese mills, as local coking coal supply is still reduced due to restrictions, while availability in the import market is also limited and if buyers need to replenish stocks they have to pay higher prices.
Quotations of premium hard coking coal from Australia are equivalent to $256.5/mt CFR China, up $8/mt compared to last week. Ex-Australia hard coking coal prices correspond to $191.5/mt CFR, up $4.5/mt compared to the previous week.
Coke prices in Tangshan are at RMB 3,320/mt ($512/mt) ex-warehouse, rising by RMB 240/mt ($37/mt) compared to August 20, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have seen big increases amid good demand from steelmakers and decreasing inventory. Rising raw material prices have pushed up coke prices. The limited supply of coking coal will not be eased in the short term, which will bolster coke prices. It is expected that coke prices in the Chinese domestic market will edge up in the coming week.
As of Friday, August 27, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 3,164.5/mt ($488/mt), increasing by RMB 334/mt ($51.5/mt) or 11.8 percent compared to August 20.
$1 = RMB 6.4863