Chinese met coke prices remain firm starting May 2019. Prices have already seen three rounds of uptick starting May.
In the domestic China market, a proposal was made to raise coke prices by USD 14/MT – the fourth time such a proposal has been made. Market participants have mixed views about acceptance of the price revision, given the low coke inventory at cokeries amid narrowing steel margins.
Domestic coke prices have been trending up since mid-April, but export offers have yet to reflect the strength in domestic prices, few sources mentioned.
Two major Chinese coke producers said they expected China’s coke exports to dip significantly in 2019 should China domestic coke prices remain strong.
Coke profits are increasing but steel mills margins are slipping,” a coke trader said, skeptical of the likelihood of acceptance by Chinese steelmakers amid the rising raw material prices. Cokeries’ profit margins were around USD 30-40/MT, a coke trader said.
In addition, there are wide margins at coke plants in China which are supporting Chinese coking coal prices, which will, in turn, keep seaborne coking coal process generally stable. Market participants believe that while demand for seaborne materials is in the doldrums, offers will not retreat immediately.
Price Assessments for Week 23 (03 June – 09 June 2019)
Prices for 64% CSR and the 62% CSR grades are assessed at around USD 336/MT and USD 322/MT FOB China respectively, increased by USD 1.5/MT from the rates that prevailed in the last week (27 May – 02 June’19).
Indian met coke import prices have also shown an uptick of around USD 1.5/MT as compared to last week and currently hovering at around USD 350.50/MT for 64% CSR and the 62% CSR grades prices at around USD 336.5/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 320/MT, FOB China for a 64%/62% CSR coke.
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