Chinese met coke prices have gained a sudden rise of USD 5/MT in the fourth week of July.
Prices are up as the major coke producers have proposed to raise coke prices by USD 14-15/MT due to very fewer profit margins since last week.
Market participants shared that the current domestic market looks like a war between steel mills and coke plants. On one hand, Chinese coke plants want to raise their offer because the margin is close to zero on the other hand steel mill margins, which was hurt by the iron ore price rally, is also looking quite poor at the moment.
Indian market scenario
Majority of Chinese market participants shared that as Steel and Coke are under pressure in India, and the overall market is soft, there are chances that demand from the Indian market to return in September. But, structurally, in case Indian buyers return, there are chances that due to current China’s port restrictions, the trade might be difficult.
Price Assessments for Week 30 (22 July – 28 July 2019)
Prices for 64% CSR and the 62% CSR grades are up this week and currently assessed at around USD 315/MT and USD 301/MT FOB China respectively from the rates that prevailed in the last week 29 (15 July – 21 July’19).
Indian met coke import prices have also shown an increase and are currently hovering at around USD 331/MT for 64% CSR and the 62% CSR grades prices at around USD 317/MT on CNF India basis.
The tradable offer for Chinese 62%/60% coke was indicated at USD 294/MT FOB China with August 1-10 laycan in line with the market expectations on the price uptick proposed in Northern China this week.
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