Chinese met coke market is showing a sign of stability after a continuous fall since mid-June despite weakening seaborne market.
At present, Chinese steel mills are hardly looking to buy any spot seaborne coking coal in the light of persistently tight margins for steel. Overall, the coking coal market is seen to be weak due to less buying interest by Chinese steel mills as few of them already booked cargoes under long term contracts before.
Market participants shared that the current domestic market looks like a war between steel mills and coke plants. On one hand, Chinese coke plants want to raise their offer because the margin is close to zero on the other hand steel mill margins, which was hurt by the iron ore price rally, is also looking quite poor at the moment.
Prices are not likely to see any further cut as the coke margin is decreasing and currently standing at very less amount according to a few other market sources.
Price Assessments for Week 29 (15 July – 21 July 2019)
Prices for 64% CSR and the 62% CSR grades are stable this week and currently assessed at around USD 308/MT and USD 294/MT FOB China respectively from the rates that prevailed in the last week 28 (08 July – 14 July’19).
Indian met coke import prices are also stable and are currently hovering at around USD 322/MT for 64% CSR and the 62% CSR grades prices at around USD 308/MT on CNF India basis.
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