The price hike of Coke continued this week; the sharp hike touched the upper limit on Dalian Commodity Exchange. It increased more than 5 percent to its strongest in three months, highest for the day at 1,773.5 yuan.
Though the some market participants do not see it as a permanent change, there are feelings and expectations of a correction in seaborne prices, as most of the buyers, mainly outside China prefer to have index-linked prices instead of fixed ones.
Currently the Chinese buyers are looking for high grade ore and pellets in order to offset high coke prices however the discount on low grade Indian ore will increase due to the buyers’ preference for its high grade counterpart.
According to an east India exporter they are in watch and wait mode to see whether the price hike sustains for longer period and currently Fe 63% Indian fines are offered at USD 52-53/MT FOB India which is equivalent to USD 60-61/MT CFR, China.
Leave a Reply