Chinese met coke prices have seen an uptick starting May. Prices for 64% CSR and 62% CSR moved up by USD 9/MT and USD 11/MT, FOB China in one month time.
Domestic coke market is showing strong uptrend due to improvement in domestic demand coupled with the tightness in supply due to strict environmental efforts.
Starting May, prices have already seen two round of upticks till the third week of May by around USD 14-15/MT on account of stricter environmental controls in the Shanxi area (one of the major Chinese steelmaking area). Now, the Chinese domestic coke market further seeing the third round of price hike starting the fourth week of May. The third round of price hike has been accepted by steelmakers in Shandong and may see similar acceptance by other steelmakers in Northern China this week.
However, according to a few market participants, they are still looking forward to further potential gain of USD 14/MT later this month. As we all know that, traditionally, the month of May remains peak season for China in terms of trade so, prices are likely to remain strong for May.
Price Assessments for Week 21 (20 May – 26 May 2019)
Prices for 64% CSR and the 62% CSR grades are assessed at around USD 332/MT and USD 319/MT FOB China respectively, increased by USD 3/MT from the rates that prevailed in the last week (13 May – 19 May’19).
Indian met coke import prices have also shown an uptick of around USD 3/MT as compared to last week and currently hovering at around USD 346.50/MT for 64% CSR and the 62% CSR grades prices at around USD 333.5/MT on CNF India basis.
Meanwhile, a wide bid-offer gap continued in the export coke market as Chinese domestic coke prices continued on the uptrend. A tradable offer was heard at USD 313/MT, FOB China for a 64%/62% CSR coke.
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