During the week ending March 15, local coke prices in China have moved down due to extremely weak demand. While the fifth round of local coke price declines was announced early this week, by the end of the week there have been reports that a next round of price cuts has been proposed.
First-grade coke prices in Tangshan are at RMB 2,090/mt ($294/mt) ex-warehouse, moving down by RMB 110/mt ($15.5/mt) compared to March 8, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change（RMB/mt) |
Weekly Change（$/mt) |
|
Coke |
First grade （A<13.0,S<0.75,CSR>65.0 |
Hancheng, Shaanxi |
2,050 |
288.8 |
-110.0 |
-15.4 |
|
Zibo, Shandong |
2,240 |
315.6 |
-110.0 |
-15.4 |
||
|
Pingdingshan, Henan |
2,090 |
294.4 |
-110.0 |
-15.4 |
||
|
Tangshan |
2,090 |
294.4 |
-110.0 |
-15.4 |
||
|
Huaibei, Anhui |
2,140 |
301.5 |
-110.0 |
-15.4 |
||
|
Average |
2,122 |
299.0 |
-110.0 |
-15.4 |
All prices include 13 percent VAT.
During the given week, coke prices in the Chinese domestic market have moved on a downtrend amid steelmakers’ production halts, which slackened the demand for coke. At the same time, steelmakers’ inventories of coke have been at relatively high levels, exerting a negative impact on their demand for coke. Local coking coal prices have indicated a downtrend, weakening the support for coke prices from the cost side. It is thought that coke prices in the Chinese domestic market will likely see further decreases in the coming week.
On March 8, offer prices of coke CSR65 in the export market have been at $300-310/mt FOB, decreasing by $10/mt compared to March 8.
As of March 15, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,564.5/mt ($220/mt), decreasing by RMB 165/mt ($23.2/mt) or 9.5 percent since March 8, while down 2.89 percent compared to the previous trading day, March 14. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 2,141/mt ($301.5/mt), decreasing by RMB 151/mt ($21.3/mt) or 6.6 percent since March 8, while down 1.72 percent compared to the previous trading day, March 14.
$1 = RMB 7.0975