During the week ending May 24, local coke prices in China have moved down compared to the previous week, and a second round of declines is expected for next week. Coke futures prices have, on the contrary, increased, which, however, has failed to support the spot market as buyers’ positions are stronger.
First-grade coke prices in Tangshan are at RMB 2,090/mt ($294/mt) ex-warehouse, moving down by RMB 110/mt ($15.5/mt) compared to May 17, according to SteelOrbis’ data.
Prices of coke in local markets in China
|
Product Name |
Specification |
Place of Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change（RMB/mt) |
Weekly Change ($/mt) |
|
Coke |
First grade (A<13.0,S<0.75,CSR>65.0) |
Hancheng, Shaanxi |
2,050 |
288.3 |
-110.0 |
-15.7 |
|
Zibo, Shandong |
2,240 |
315.0 |
-110.0 |
-15.7 |
||
|
Pingdingshan, Henan |
1,980 |
278.5 |
-110.0 |
-15.7 |
||
|
Tangshan |
2,090 |
294.0 |
-110.0 |
-15.7 |
||
|
Huaibei, Anhui |
2,030 |
285.5 |
-110.0 |
-15.7 |
||
|
Average |
2,078 |
292.3 |
-110.0 |
-15.7 |
All prices include 13 percent VAT.
Steelmakers issued requests for reduced coke prices on May 20, with the first round of declines in coke prices being quickly implemented on May 21. Coking plants’ capacity utilization rates have been at relatively high levels, while steelmakers have been willing to buy, resulting in low inventory levels, which has bolstered coke prices to a certain degree. Local coking coal prices have also indicated declines in the given week, weakening the support for coke prices. Following the previous four rounds of hikes in coke prices, some coking plants whose coke sales have been proceeding smoothly have remained marginally profitable in the given week, while some other plants have been under pressure to realize profits. It is thought that coke prices in the Chinese domestic market will likely continue their downtrend in the coming week.
On May 24, prices of coke CSR65 in the export market have been at $300-310/mt FOB, decreasing by $5-10/mt compared to May 17. This has been due not only to lower domestic prices, but also to the news about quotas to be implemented in India. Indonesian coke offers are standing at $305-310/mt FOB.
As of May 24, coking coal futures at Dalian Commodity Exchange (DCE) are standing at RMB 1,814/mt ($255/mt), increasing by RMB 89.5/mt ($12.6/mt) or 5.2 percent since May 17, while up 1.0 percent compared to the previous trading day, May 23. Meanwhile, coke futures prices at Dalian Commodity Exchange (DCE) are standing at RMB 2,374.5/mt ($334/mt), increasing by RMB 110.5/mt ($15.5/mt) or 4.9 percent since May 17, while up 1.39 percent compared to the previous trading day, May 23.
$1 = RMB 7.1102