Chinese coke prices decrease
2023-04-11 08:25:34 [Print]
BEIJING (Asian Metal) 11 Apr 23 - Domestic steel mills required cutting purchasing prices of coke again this week after the markdown of RMB50-100/t (USD7-14/t) last week. The current prevailing prices of metallurgical coke A13 S0.7 hover at RMB2,450-2,850/t (USD356-412/t) D/P, down by RMB50/t (USD7/t) compared with late last week. Insiders foresee stable prices of coke in the coming several days in view of the steady market.
"We announced the decision to decrease purchasing prices of wet quenching metallurgical coke A13 S0.7 by RMB50/t (USD7/t) to RMB2,460/t (USD358/t) last Sunday, and coking plants accept the price decline on Monday. We bought 5,000t of the material at RMB2,460/t (USD358/t) on Monday and last bought 3,000t at RMB2,510/t (USD365/t) last Thursday," disclosed the purchasing official from a steel mill in Hebei. According to him, struggling on the edge of suffering, they endeavor to cut production costs, and maintain stock of coke only for 5-day consumption, while usually hold 7-day consumption of coke. However, he does not plan to cut prices of coke again and predicts stable prices of coke in the forthcoming several days. "Steel mills suffer losses after this round of decline, and they might cut production if prices of coke go down again," explained the source.
Based on the annual consumption capacity of 2 million tons, the steel mill would consume 90,000t of coke in April, similar to March. It roughly used 270,000t of coke in the first quarter of 2023 and 920,000t or so in 2022. The coking plant holds approximately 15,000 of inventories at present.
The sales official from a coking plant in Shandong confirms the price decline of coke. "Nearby steel mills required decreasing prices of coke by RMB50/t (USD7/t) on Monday, and we had to accept seeing the poor market performance and decreasing prices of downstream steel," noted the source. In the meantime, he pointed out that the sales performance showed signs of improving on Monday. "Believing prices of coke hard to go up further, steel mills became active in purchasing on Monday. We sold 5,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,820/t (USD410/t) EXW easily on Monday, and last sold 3,000t of the material at RMB2,870/t (USD417/t) after tough negotiations last Friday," revealed the source, adding that the purchasing activities of traders also increased. The source believes prices of coke would stabilize in the coming several days seeing the improving market but the decreasing prices of steel.
With an annual production capacity of 1.16 million tons, the coking plant might produce 80,000t in April, similar to March. It roughly produced 260,000t of coke in the first quarter of 2023, without any stock right now.
"We announced the decision to decrease purchasing prices of wet quenching metallurgical coke A13 S0.7 by RMB50/t (USD7/t) to RMB2,460/t (USD358/t) last Sunday, and coking plants accept the price decline on Monday. We bought 5,000t of the material at RMB2,460/t (USD358/t) on Monday and last bought 3,000t at RMB2,510/t (USD365/t) last Thursday," disclosed the purchasing official from a steel mill in Hebei. According to him, struggling on the edge of suffering, they endeavor to cut production costs, and maintain stock of coke only for 5-day consumption, while usually hold 7-day consumption of coke. However, he does not plan to cut prices of coke again and predicts stable prices of coke in the forthcoming several days. "Steel mills suffer losses after this round of decline, and they might cut production if prices of coke go down again," explained the source.
Based on the annual consumption capacity of 2 million tons, the steel mill would consume 90,000t of coke in April, similar to March. It roughly used 270,000t of coke in the first quarter of 2023 and 920,000t or so in 2022. The coking plant holds approximately 15,000 of inventories at present.
The sales official from a coking plant in Shandong confirms the price decline of coke. "Nearby steel mills required decreasing prices of coke by RMB50/t (USD7/t) on Monday, and we had to accept seeing the poor market performance and decreasing prices of downstream steel," noted the source. In the meantime, he pointed out that the sales performance showed signs of improving on Monday. "Believing prices of coke hard to go up further, steel mills became active in purchasing on Monday. We sold 5,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,820/t (USD410/t) EXW easily on Monday, and last sold 3,000t of the material at RMB2,870/t (USD417/t) after tough negotiations last Friday," revealed the source, adding that the purchasing activities of traders also increased. The source believes prices of coke would stabilize in the coming several days seeing the improving market but the decreasing prices of steel.
With an annual production capacity of 1.16 million tons, the coking plant might produce 80,000t in April, similar to March. It roughly produced 260,000t of coke in the first quarter of 2023, without any stock right now.
