During the week ending May 10, local coke prices in China have continued the increases compared to the previous week, however, market sources believe that weaker than expected steel demand will prevent them from further increases.
First-grade coke prices in Tangshan are at RMB 2,200/mt ($310/mt) ex-warehouse, increasing by another RMB 110/mt ($15.5/mt) compared to April 26, according to SteelOrbis’ data.
Prices of coke in local markets in China:
|
Product Name |
Specification |
Place of Origin |
Price（RMB/mt） |
Price ($/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 |
110.0 |
15.7 |
|
Zibo, Shandong |
2,350 |
330.9 |
110.0 |
15.7 |
||
|
Pingdingshan, Henan |
2,090 |
294.3 |
110.0 |
15.7 |
||
|
Tangshan |
2,200 |
309.8 |
110.0 |
15.7 |
||
|
Huaibei, Anhui |
2,140 |
301.4 |
110.0 |
15.7 |
||
|
Average |
2,188 |
308.1 |
110.0 |
15.7 |
including 13 percent VAT
Coking plants attempted to implement the fifth round of hikes in coke prices this week, though mainstream steelmakers have been resistant to price increases. Currently, coking plants basically resumed profitability. However, local coking coal prices have also seen rises, exerting a negative impact. At the same time, demand for finished steel has slackened, negatively affecting its prices and also weakening the demand for coke. It is thought that coke prices in the Chinese domestic market will likely move sideways in the coming week.
On May 10, offer prices of coke CSR65 in the export market have been at $315/mt FOB, increasing by $5/mt compared to April 26m while some suppliers have been testing $320/mt FOB.
As of May 10, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,753.5/mt ($256/mt), decreasing by RMB 64/mt ($9.0/mt) or 3.5 percent since April 26, while down 1.04 percent compared to the previous trading day, May 9. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 2,269/mt ($332/mt), decreasing by RMB 88.5/mt ($12.5/mt) or 3.75 percent since April 26, while down 1.45 percent compared to the previous trading day, May 9.
$1 = RMB 7.1011