Chinese coke prices flat
2023-03-09 08:23:16 [Print]
BEIJING (Asian Metal) 9 Mar 23 - Though domestic coking plants required lifting prices of coke by RMB100-110/t (USD14-16/t) since last week, steel mills did not accept till now. Presently, the mainstream prices of dry quenching metallurgical coke A12.5 S0.7 hover at RMB3,000-3,200/t (USD431-469/t) D/P EXW, and those of dry quenching metallurgical coke A13 S0.7 stand at RMB2,850-3,050/t (USD409-438/t) D/P delivered, both stable compared with late last week. Considering that steel mills report thin profits and less satisfactory sales performance of downstream steel, insiders believe prices of coke hard to go up and might keep stable in the coming several days.
"Coking plants asked to increase the price of coke by RMB110/t (USD16/t) from last week, but we did not give response yet. We tried to contact with other peers, who also refused for the price increase seeing the poor sales performance of steel and the narrow profits. However, we found it hard to cut prices of coke down seeing the high prices of coal, and prices of coke may keep firm in the following several days," disclosed the purchasing official from a steel mill in North China. The steel mill bought 2,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,920/t (USD419/t) on Wednesday, while usually purchases 3,000t at one single time. According to him, the tight capital flow dragged by the unsatisfactory sales performance of steel as well as the uncertainty of the coke market make them cautious about purchasing.
Reporting an annual coke consumption capacity of 650,000t, the steel mill might consume 53,000t of coke in March, up from 50,000t in February. The steel mill roughly used 590,000t of coke in 2022 and 600,000t or so in 2021. It holds around 14,000t of stocks right now.
"The confidence of coking plants weakened this week dragged by the soft demand of downstream steel as well as the powerless rise of upstream coal. Last week, we strongly believed prices of coke would rise by RMB100-110/t (USD14-16/t) this week, but confuse about the market at the moment. We tried to contact with several mainstream steel mills this week, but none of them showed intention of accepting the price increase. Besides, with sufficient stocks in hand, they remain not in a hurry to purchase," disclosed the sales official from a coking plant in North China. In the meantime, the source pointed out that steel mills endeavor to reduce purchasing volumes dragged by the poor sales performance and the unclear price trend of downstream steel. "A regular steel mill just bought 5,000t of dry quenching metallurgical coke A12.5 S0.7 at RMB3,200/t (USD469/t) on Wednesday, while last bought 10,000t at the same price late last week," added the source. Upon the low purchasing activities of steel mills, the source thinks prices of coke might keep flat in the forthcoming several days.
Based on an annual production capacity of 1.6 million tons, the coking plant estimates that the output of coke would 110,000t in March, up from 90,000t in February. The coking plant recorded the total output of around 1.3 million tons in 2022 and 1.4 million tons in 2021, without any stock at present.
"Coking plants asked to increase the price of coke by RMB110/t (USD16/t) from last week, but we did not give response yet. We tried to contact with other peers, who also refused for the price increase seeing the poor sales performance of steel and the narrow profits. However, we found it hard to cut prices of coke down seeing the high prices of coal, and prices of coke may keep firm in the following several days," disclosed the purchasing official from a steel mill in North China. The steel mill bought 2,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,920/t (USD419/t) on Wednesday, while usually purchases 3,000t at one single time. According to him, the tight capital flow dragged by the unsatisfactory sales performance of steel as well as the uncertainty of the coke market make them cautious about purchasing.
Reporting an annual coke consumption capacity of 650,000t, the steel mill might consume 53,000t of coke in March, up from 50,000t in February. The steel mill roughly used 590,000t of coke in 2022 and 600,000t or so in 2021. It holds around 14,000t of stocks right now.
"The confidence of coking plants weakened this week dragged by the soft demand of downstream steel as well as the powerless rise of upstream coal. Last week, we strongly believed prices of coke would rise by RMB100-110/t (USD14-16/t) this week, but confuse about the market at the moment. We tried to contact with several mainstream steel mills this week, but none of them showed intention of accepting the price increase. Besides, with sufficient stocks in hand, they remain not in a hurry to purchase," disclosed the sales official from a coking plant in North China. In the meantime, the source pointed out that steel mills endeavor to reduce purchasing volumes dragged by the poor sales performance and the unclear price trend of downstream steel. "A regular steel mill just bought 5,000t of dry quenching metallurgical coke A12.5 S0.7 at RMB3,200/t (USD469/t) on Wednesday, while last bought 10,000t at the same price late last week," added the source. Upon the low purchasing activities of steel mills, the source thinks prices of coke might keep flat in the forthcoming several days.
Based on an annual production capacity of 1.6 million tons, the coking plant estimates that the output of coke would 110,000t in March, up from 90,000t in February. The coking plant recorded the total output of around 1.3 million tons in 2022 and 1.4 million tons in 2021, without any stock at present.
