The Chinese metallurgical coke export market has remained bullish this week, although steel mills are yet to agree with the proposed price hike by coking plants.
Prices have shot up to their highest levels since the beginning of the year on the back of a strong recovery in Northeast Asian steel output.
Chinese met coke export prices are currently assessed at around $316.00/t and $295.00/t for the 64% CSR and the 62% CSR grades respectively on FOB China basis.
Chinese domestic met coke prices are expected to remain supported in the near term on higher demand and tight supply, despite retreating steel margins.
Chinese met coke prices may also find support at main production areas, as the country’s leading coke hub is about to conduct safety scrutiny on coking industry until October 31.
Chinese coking coal stocks decline amid pre-holiday purchases
China’s domestic coking coal market has been witnessing a marked improvement on the back of increased restocking from coking plants, encouraging some producers to marginally raise prices.
Domestic coking coal sales in China has picked up considerably over the recent past on the back of a strengthening coke market, and many coal miners reportedly have no stockpiles left due to increased sales as of late.
Chinese coke producers’ intensified restocking ahead of the National Day holiday is further accelerating decline of coking coal stocks at coal mines, thus bolstering market prospects.
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By Aditya Sinha
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