Chinese domestic metallurgical coke price continued its upward momentum this week on the back of healthy steel margins and supply tightness.
CoalMint assessed the latest price for domestic met coke with 12.5% ash in North China at CNY 2,500/t ($393.16/t), up CNY 100/t ($14.26/t) on the week.
China steel mills accept 5th coke price uptick
In the Chinese domestic metallurgical coke segment, steel mills readily accepted the fifth round of price uptick by CNY 100/t proposed by producers in Shandong and Hebei.
Moreover, coke plants’ utilization rates are lower due to the recent environmental inspections.
The relative tight supply and firm steady demand from end-users alongside the strong futures market would support coke price performance in the near run.
Coking coal market remains strengthened
With the safety inspections conducted frequently in Shanxi’s Jinzhong and Lvliang areas, the overall operating rate of coking coal is affected. Stockpiling needs from coke plants have slowed down, but price of premium coking coal remains firm. It is expected that coking coal price will remain bullish in the near term.
Meanwhile, the National Development and Reform Commission of the People’s Republic of China (NDRC) announced an indefinite suspension of all activities under China’s Australia Strategic Economic Dialogue, thereby raising questions about the market outlook on imported coals.
Hence, China’s resumption of Australian coking coal imports may be delayed further, and Chinese buyers may continue to book alternative imports as domestic met coke prices rebounded since mid-April.
In April 2021, China’s import of coal and lignite stood at 21.73 mn t, down 29.8% y-o-y; while during January-April 2021, the cumulative import of the same was 90.13 mn t, down 28.8% y-o-y.
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