Chinese domestic metallurgical coke prices remain well supported on tight supplies, as steel mills have accepted the 13th round of price uptick by CNY 100/t proposed by coking plants.
Higher met coke prices in China, having risen to exceed $400/t, and stronger domestic coking coal prices continue to buoy seaborne markets.
Presently, the coking plants are running with lucrative profits leading to high operating rate and sound sales; coupled with the impact of resurging Covid-19 cases, trucking costs are ticking up and the market on the whole is buoyant.
Chinese domestic coke prices have rallied since August 2020, as demand for coke ramped up while supply was tight due to production cut and replacement.
Meanwhile, China’s imported met coke prices keep soaring amid persistent supply tightness, whereas China-delivered seaborne coking coal prices also continue rallying on active buying interest despite limited spot availability of non-Australian premium coking coals.
CoalMint assessed the latest price for domestic met coke with 12.5% ash in North China at CNY 2,610/t ($411.79/t), up CNY 90/t ($17.98/t) on the week, with more upticks expected.
Outlook—
Chinese market participants expect domestic coke prices to remain elevated on supply tightness and new rounds of environmental controls to be implemented in Northern China.
Steelmakers anticipate that domestic coke prices would not drop below CNY 2,500/t, given the supply tightness of coke.
While steel mills are still focused on pre-Lunar New Year restocking, the impact of the new Covid-19 outbreak in Shijiazhuang city on steel production remains to be seen.
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By Aditya Sinha
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