During the week ending May 30, local coke prices in China have moved down compared to May 23, while market sources are waiting for the third round of coke price cuts after the short holiday next week.
First-grade coke prices in Tangshan are at RMB 1,320/mt ($183/mt) ex-warehouse, moving down by RMB 55/mt ($7.5/mt) compared to May 23, according to SteelOrbis’ data.
Prices of coke in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coke | First grade （A<13.0,S<0.75,CSR>65.0） | Hancheng, Shaanxi | 1,280 | 178.1 | -55.0 | -7.5 |
| Zibo, Shandong | 1,470 | 204.6 | -55.0 | -7.4 | ||
| Pingdingshan, Henan | 1,320 | 183.7 | -55.0 | -7.5 | ||
| Tangshan | 1,320 | 183.7 | -55.0 | -7.5 | ||
| Huaibei, Anhui | 1,370 | 190.7 | -55.0 | -7.5 | ||
| Average | 1,352 | 188.2 | -55.0 | -7.5 |
including 13 percent VAT
Prices of coking coal in local markets in China
| Product Name | Specification | Place of Origin | Price（RMB/mt） | Price ($/mt) | Weekly Change（RMB/mt） | Weekly Change（$/mt） |
| Coking Coal | A9,S0.4,V19,G88 | Linfen low-sulfur primary coking coal | 1,230 | 171.2 | 0.0 | 0.2 |
| A10.5,S3,V25,G80 | Lveliang high-sulfur primary coking coal | 850 | 118.3 | -50.0 | -6.8 | |
| A10,S1.8,V21,G90 | Jinzhong medium-sulfur primary coal | 948 | 131.9 | 0.0 | 0.1 | |
| A12,S1.2,V37.G90 | Linfen low-sulfur 1/3 coking coal | 930 | 129.4 | -30.0 | -4.0 | |
| Average | 989.5 | 137.7 | -20.0 | -2.6 |
During the given week, average coking coal prices in the Chinese domestic market have edged down amid increasing inventories. Steelmakers’ molten iron outputs have declined, slackening the demand for coking coal. At the same time, steelmakers’ profit margins have decreased and so they have been trying to lower the purchase costs of coking coal. It is thought that coking coal prices may edge down in the coming period.
The second successive round of declines in coke prices has been implemented in the past week. Coking plants have been willing to produce, resulting in increasing coke outputs. However, finished steel prices have moved down, resulting in slacker demand for coke. Sufficient supply and sluggish demand will weaken coke prices. It is expected that coke prices in the Chinese domestic market will see further declines in the coming week.
On May 30, offer prices of coke CSR65 in the export market stand at $215/mt FOB, decreasing by $3/mt compared to May 23.
As of May 30, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 726/mt ($100.8/mt), decreasing by RMB 75.5/mt ($10.5/mt) or 9.4 percent since May 23, while down 5.28 percent compared to the previous trading day, May 29. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 1,308/mt ($182/mt), decreasing by RMB 75/mt ($10.4/mt) or 5.4 percent since May 23, while down 2.13 percent compared to the previous trading day, May 29.
$1 = RMB 7.1848
