Chinese metallurgical coke export prices have dropped for the third week in row due to the continued decline in the country’s export deals with overseas buyers shifting to alternative origins, as well as the possibility of stringent production curbs on environmental grounds in China.
Notably, this sharp decline came after offers for the steelmaking raw material peaked at around USD 374/MT FOB China near about three weeks ago.
In addition, China’s domestic coke prices have decelerated in the past few weeks, with purchasing mills squeezing the cost of the blast furnace fuel.
Reportedly, North China’s Hesteel Group has reduced its purchase price this week to RMB 2,270/MT for met coke with 65% coke strength after reaction (CSR) delivered to its facilities from 17 Jul’18 onward, down RMB 100/MT compared with its last price.
Source: CoalMint Research
On the pricing front, latest import offers for the 64% CSR met coke have plummeted to as low as USD 344/MT FOB China, down by about USD 23/MT than the rates that prevailed in the week gone by.
Similarly, offers for the 62% CSR met coke has decreased to around USD 334/MT FOB China.
For Indian buyers, these offers amount to USD 360/MT and USD 350/MT respectively on CNF basis.
Nevertheless, India’s domestically produced met coke prices have remained unchanged for the last two months.
The current ex-works prices of the Blast Furnace grade are hovering around INR 26,000/MT (east coast) and between INR 27,000 and 28,000/MT (west coast).
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