During the week ending November 19, import quotations for import coking coal in China have moved down very sharply, continuing the trend seen a week ago. Demand has been poor, while supply owing to volumes from the ports has been sufficient, putting big pressure on prices.
Quotations of premium hard coking coal from Canada have slipped to $457/mt CFR, down by $76/mt over the past week, while the tradable level from North America has already fallen below $450/mt CFR by the end of the week. Lower quality Russian coking coal price has been at $345/mt CFR, down $85/mt compared to that recorded on November 12.
Coke prices in Tangshan are at RMB 3,160/mt ($495/mt) ex-warehouse, moving down by RMB 400/mt ($62.7/mt) compared to November 12, according to SteelOrbis’ data.
During the given week, coke prices in the Chinese domestic market have continued their strong declining trend amid the decreasing capacity utilization rates. More coking plants implemented maintenance works, aiming to reduce their losses amid the downtrend of coke prices. Steelmakers have been seeking to cut purchase prices for coke, which will exert a negative impact on coke prices in the near future.
As of Friday, November 19, coke futures prices at Dalian Commodity Exchange (DCE) are at RMB 2,801.5/mt ($439/mt), decreasing by RMB 150.5/mt ($23.6/mt) or 5.1 percent compared to November 12.
$1 = RMB 6.3825
