Chinese domestic metallurgical coke prices were mostly stable during this week as the markets remained closed for the Golden Week holidays.
CoalMint assessed the latest price for domestic met coke with 12.5% Ash in northern China at CNY 2,010/t, or $300.24/t FOB China, on Oct. 8, unchanged from Oct. 1 — prices remained supported at higher levels amid supply tightness, coupled with firm demand despite shrinking steel margins.
Presently, there are mixed views on near-term prices of domestic met coke in China. Some sources expect that the persistent supply tightness would keep prices firm and producers might propose another round of price hike after their return after week-long holidays. However, some traders anticipate that poor steel margins and uncertainty surrounding downstream sales might exert downward pressure on domestic met coke prices in China.
Meanwhile, met coke producers in Shanxi and Hebei have already proposed a fourth round of price hike, raising coke prices by CNY 50/t. Market participants said tight supply supported the higher prices, adding that further production capacity cuts and replacements in Shanxi also kept sentiment firm.
Simultaneously, however, China-based steel mills are facing lower margins; though steel mills might have less bargaining power amid supply tightness, according to coke traders,
At China’s Jingtang port, sources reported that stocks were diminishing and the market saw thin trading amid low availability of port stocks.
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By Aditya Sinha
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