Chinese coke prices down
2023-04-04 08:17:08 [Print]
BEIJING (Asian Metal) 4 Apr 23 - After the stabilization since January 11, prices of coke went down late last week. Presently, the mainstream prices of metallurgical coke A13 S0.7 hover at RMB2,400-2,800/t (USD349-408/t) D/P EXW, down by RMB50-100/t (USD7-14/t) from early last week. Insiders foresee further price decline in the coming several days seeing the soft market.
"Regular steel mills required cutting prices of coke by RMB50/t (USD7/t) last Sunday, and we accepted. Now, the price of wet quenching metallurgical coke A13 S0.7 stands at RMB2,400/t (USD349/t)," disclosed the sales official from a coking plant in North China. Attributing the price decline to the unsatisfactory sales performance of steel, the source disclosed that steel mills remain eager to move down production costs dragged by the poor sales of steel and tight capital flow. "On Monday, steel mills showed intention in cutting prices of coke by another RMB50/t (USD7/t) within this week," stated the source, who sold 5,000t of the material at RMB2,400/t (USD349/t) on Monday and last sold 10,000t at RMB2,450/t (USD357/t) last Friday. In the meantime, he pointed that the decreasing prices of coal also plays an important role for the price decline of coke. Given the strong intention of cutting prices of coke from steel mills, the source predicts a further price decrease of coke of RMB50/t (USD7/t) in the coming several days.
Based on an annual production capacity of 2.05 million tons, the coking plant estimates that the output would achieve 150,000t in April, similar to March. The coking plant roughly produced 430,000t of coke in the first quarter of 2023, against 1.8 million tons in 2022. It does not hold any stock right now.
"Mainstream steel mills in Shandong and Hebei announced the decision to cut prices of coke by RMB50-100/t (USD7-14/t) last Saturday, and we had to accept. Now, we quote RMB2,790/t (USD406/t) without concession for dry quenching metallurgical coke A13 S0.7, while refused to sell at RMB2,890/t (USD421/t) last Friday," revealed the sales official from another coking plant in North China. According to him, coking plants could gain profit of around RMB100/t (USD14/t) before the price decline, while steel mills struggled at the edge of suffering losses, together with the poor sales performance of steel and decreasing prices of coal, forcing coking plants to accept the price decline. "We maintain the operation rate of 90% now, and nearby peers keep similar high operation rates, and thus steel mills remain not in a hurry to buy," added the source, who sold 5,000t of the material at RMB2,790/t (USD406/t) on Monday. He predicts another price decline of coke in the forthcoming several days seeing the slow market.
The coking plant might produce 90,000t of coke in April, identical to March. With an annual production capacity of 1.2 million tons, the coking plant recorded the output of around 230,000t in the first quarter of 2023, against 800,000t in 2022, without any stock at present.
"Regular steel mills required cutting prices of coke by RMB50/t (USD7/t) last Sunday, and we accepted. Now, the price of wet quenching metallurgical coke A13 S0.7 stands at RMB2,400/t (USD349/t)," disclosed the sales official from a coking plant in North China. Attributing the price decline to the unsatisfactory sales performance of steel, the source disclosed that steel mills remain eager to move down production costs dragged by the poor sales of steel and tight capital flow. "On Monday, steel mills showed intention in cutting prices of coke by another RMB50/t (USD7/t) within this week," stated the source, who sold 5,000t of the material at RMB2,400/t (USD349/t) on Monday and last sold 10,000t at RMB2,450/t (USD357/t) last Friday. In the meantime, he pointed that the decreasing prices of coal also plays an important role for the price decline of coke. Given the strong intention of cutting prices of coke from steel mills, the source predicts a further price decrease of coke of RMB50/t (USD7/t) in the coming several days.
Based on an annual production capacity of 2.05 million tons, the coking plant estimates that the output would achieve 150,000t in April, similar to March. The coking plant roughly produced 430,000t of coke in the first quarter of 2023, against 1.8 million tons in 2022. It does not hold any stock right now.
"Mainstream steel mills in Shandong and Hebei announced the decision to cut prices of coke by RMB50-100/t (USD7-14/t) last Saturday, and we had to accept. Now, we quote RMB2,790/t (USD406/t) without concession for dry quenching metallurgical coke A13 S0.7, while refused to sell at RMB2,890/t (USD421/t) last Friday," revealed the sales official from another coking plant in North China. According to him, coking plants could gain profit of around RMB100/t (USD14/t) before the price decline, while steel mills struggled at the edge of suffering losses, together with the poor sales performance of steel and decreasing prices of coal, forcing coking plants to accept the price decline. "We maintain the operation rate of 90% now, and nearby peers keep similar high operation rates, and thus steel mills remain not in a hurry to buy," added the source, who sold 5,000t of the material at RMB2,790/t (USD406/t) on Monday. He predicts another price decline of coke in the forthcoming several days seeing the slow market.
The coking plant might produce 90,000t of coke in April, identical to March. With an annual production capacity of 1.2 million tons, the coking plant recorded the output of around 230,000t in the first quarter of 2023, against 800,000t in 2022, without any stock at present.
