During the week ending August 7, import premium hard coking coal quotations in China have moved down amid slack demand in Asia and restrictions at Chinese ports, which have reduced the purchasing activities of mills, even despite the positive situation in the coke and finished product markets.
Quotations of premium hard coking coal from Australia are at $119.5/mt CFR China, decreasing by $4.5/mt compared to last week. Hard coking coal prices are at $99/mt CFR, moving sideways week on week.
Coke prices in Tangshan are at RMB 1,800/mt ($259.4/mt) ex-warehouse, moving sideways compared to the previous week, according to SteelOrbis’ data.
During the given week, coking plants’ capacity utilization rates in China have risen, resulting in increasing supply of coke, while traders have been more willing to conclude purchases of coke, which has resulted in decreasing inventories of coke. Steelmakers’ finished steel sales prices have increased, which will likely bolster coke prices. Since iron ore prices have indicated big rises recently, coke prices will likely be positively affected and edge up in the coming week.
As of Friday, August 7, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,072/mt ($299/mt), increasing by RMB 81/mt ($11.7/mt) or 4.1 percent compared to July 31.
$1 = RMB 6.9408