China’s domestic coke market saw limited activity this week amid a lackluster steel market, thin margins and high raw material costs.
CoalMint assessed the latest price for domestic met coke with 12.5% ash in North China at CNY 2,920/t ($459.08/t), unchanged week-on-week.
Outlook for Chinese coke market soft
China-based market participants have gradually retreated for Lunar New Year celebrations with limited negotiations taking place as restocking needs have been fulfilled.
Until last week, however, steel mills were still showing active interest in procuring coke supplies considering the hassles of interrupted logistics in Hebei province amid Covid concerns, the stockpiling need as Spring Festival approaches, and the possible snowy weather prevailing thereafter, boosting optimism amongst coke enterprises.
In the domestic coke segment, the Chinese market observed mixed views on the price outlook post the Lunar New Year holidays. While some expect prices to remain firm amid high steel production rates and firm demand for coke, others expect poor steel margins to entice price cut proposals as steel makers might seek to re-balance coke-steel profit margins.
Hence, expectations are rife that Chinese metallurgical coke prices may adjust downward post festivals, but the magnitude of decline would be dependent on steelmakers’ production and profit margins.
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