Met coke futures in the Dalian Commodity Exchange of China has surged 57.50% to Yuan 938.50/MT on bullish sentiments arising out of the flourishing steel sector.
In line with Met coke, price of Hot-Rolled Coil also has gone up by around 5.2% to Yuan 2,429/MT in the Shanghai Futures Exchange on account of optimism prevailing among Chinese steel makers.
The positive steel market outlook is a consequence of the efforts of the Chinese government to bring in efficiency into the steel sector. The government is in the process of balancing supply with demand by cutting down the excess production.
The government is in the process of lowering steel production by 45 MnT by this year as the country is slowly losing its export markets due to many nations across the world having imposed Anti-Dumping duty on the country’s steel products. In Feb’16, the Chinese government had initiated process to cut-down steel production by 100-150 tonne by the next five years.
The current export offers of the 64% CSR Met coke from China were assessed at around USD 158/MT FoB; and that of the 62% CSR Met coke were assessed at around USD 156/MT FoB.
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