The Chinese domestic metallurgical coke market strengthened this week with the second round of price hike proposed by coking plants having been accepted by some steel mills.
CoalMint assessed the latest price for domestic met coke with 12.5% ash in North China at CNY 2,220/t ($350.27/t), up CNY 70/t ($12.76/t) on the week.
Recently the frequent environmental inspection in Shanxi areas together with the shutdown of obsolete capacity has seen the operating rate of some coking companies go down. The downstream traders are active in taking position. It is expected that coke price in the short term may remain bullish
Second round coke price hike accepted
On April 19, the purchase price of coke by mainstream steel mills in Shandong province increased by CNY 100-120/t. After price revision, the off-grade wet quenched prime coke is up by CNY 100/t with supply from within Shandong province being at CNY 2,100/t and outside the region at CNY 2,110/t.
Off-grade dry quenched met coke increased by CNY 100/t and is taken at CNY 2,170/t. Grade II met coke is up by CNY 120/t and is taken at CNY 2,050/t as base price.
With the safety inspection on collieries ratcheting up in many provinces and the hamstrung import from Mongolia caused by Covid, coal inventory has come down to medium-low level, with some coking plants actively working to replenish stock on some categories below alert line. This coupled with the gradual capacity release from new coking furnaces have helped the coal demand to pick up.
Furthermore, the National Energy Administration issued consultative guidance over power generation by wind and photovoltaic means. In 2021, the power generated by wind and photovoltaic means shall account for 11% of the total societal usage of power and will back up each year to reach 16.5% by 2025.
Coking coal market remains largely stable
Price of coking coal further consolidated its strong position, with price uptick across all spectrum of products. On supply side, safety inspections have been intensive and strict, reprimanding those with excessive production and false shutdown, which limit the new addition in output for the market in Shanxi.
Leave a Reply