Slight slowdown in activity in local Chinese coke market

Friday, 10 January 2014 14:49:47 (GMT+3)   |   Shanghai

During the week ending January 10, metallurgical coke prices in the local Chinese market have indicated a slight downward trend, while transaction activity has slackened a little. As of January 10, coke futures contract (1405) offers at Dalian Commodity Exchange closed at RMB 1,382/mt ($226/mt), down by $7/mt week on week. Local coke prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.

In the given week, domestic steel mills' purchasing activities for coke have remained at normal levels, though slowing slightly compared to the previous week and resulting in a slight decline in coke prices. Meanwhile, coking plants have softened their offers in order to deplete their inventories ahead of the Spring Festival holiday (starts end of January). Moreover, downticks in prices of coking coal have been exerting negative pressure on coke prices. On the other hand, however, the long-term supply agreements signed between steel mills and coking plants have played a crucial role in supporting the stability of coke prices in China. Overall, it is thought that coke prices in the Chinese domestic market will likely trend sideways or just soften slightly in the coming week.  

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