During the week ending March 8, prices for both local and import coking coal in China have posted visible declines due to slow demand. Local coke prices in China have moved sideways compared to the previous week, but the correction is expected next week, while in the export market some sellers have already provided visible discounts to sign deals.
The import premium hard coking coal (PHCC) price in China has declined to $305/mt CFR in line with offers from the US, while last week the level was $315/mt CFR. Ex-Australia PHCC reference price has been at $305/mt FOB, down by just $2/mt from the latest deal, and Chinese appetite has been limited again, which may put pressure on Australian quotations to go to $300/mt FOB.
On March 8, offer prices of coke CSR65 in the export market have been at $310-320/mt FOB, decreasing by $10/mt compared to March 1. The lower end of the range has been confirmed in a deal in ASEAN, while earlier in a week, a sale to India has been heard closer to higher end of the range. Some mills have been offering at $325-330/mt FOB, which has been fully out of interest from the buyer’s side.
First-grade coke prices in Tangshan are at RMB 2,200/mt ($310/mt) ex-warehouse, moving sideways compared to March 1, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change（RMB/mt) |
Weekly Change ($/mt) |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0) |
Hancheng, Shaanxi |
2,160 |
304.2 |
0.0 |
0.3 |
|
Zibo, Shandong |
2,350 |
331.0 |
0.0 |
0.3 |
||
|
Pingdingshan, Henan |
2,200 |
309.9 |
0.0 |
0.3 |
||
|
Tangshan |
2,200 |
309.9 |
0.0 |
0.3 |
||
|
Huaibei, Anhui |
2,250 |
316.9 |
0.0 |
0.3 |
||
|
Average |
2,232 |
314.4 |
0.0 |
0.3 |
All prices include 13 percent VAT.
During the given week, coke prices in the Chinese domestic market have remained stable amid the prevailing cautious sentiments. Finished steel prices continued the downtrend, exerting a negative impact on the coke market. Rumors said further declines might be expected for coke prices in the near future, while the decreasing capacity utilization rates on coking plants’ side might bolster its prices to a certain degree. Compared to the previous week, parties have been unwilling to build up stock for coke, which will likely weaken the support to its prices. It is expected that coke prices might edge down in the coming week.
As of March 8, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,729.5/mt ($244/mt), decreasing by RMB 51/mt ($7.2/mt) or 2.9 percent since March 1, while down 0.14 percent compared to the previous trading day, March 7. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 2,292/mt ($323/mt), decreasing by RMB 69.5/mt ($9.8/mt) or 2.9 percent since March 1, while down 0.52 percent compared to the previous trading day, March 7.
$1 = RMB 7.0978