Chinese domestic metallurgical coke prices continued to move up amid tight supply, with buyers accepting a twelfth round of price uptick this week.
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.
Chinese market participants are presently heard adopting a cautious stance following the consistent price upticks in recent months although the current high steel prices in China have been helping absorb higher raw material costs of met coke and coking coal.
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.
CNF China prices for met coke from major origins have increased by approximately $10/t week-on-week and are currently assessed at $340/t (Japan), $335/t (Poland), $325/t (South Korea) and $325/t (Russia).
HBIS hikes met coke purchase price—
HBIS, a major steel mill in China’s Hebei province, has accepted a 12th round of price uptick for domestic metallurgical coke by RMB 100/t with effect from 7 Jan’21.
Prices after adjustment including tax are at RMB 2,700/t for prime grade (ash<12.5, sulfur<0.65, CSR>65, moisture<7) and RMB 2,500/t for medium-sized coke (ash<13, sulfur<1, CSR>60, moisture<7).
Outlook—
A firm outlook on met coke prices is expected to continue for now.
However, price downside could come from the weaker steel margins, as tight coke supply and weak construction demand continue to play out in China.
With surging prices of steelmaking raw materials, including both coking coal and met coke, steel mills may possibly curtail their trading activity to reassess their procurement plans.
Some cities in Hebei Province saw a rebound in COVID-19 cases recently, impacting the steel industry as Hebei is a key steel-making region in China.
~
By Aditya Sinha
Leave a Reply