Chinese coke prices decline
2023-04-18 08:32:47 [Print]
BEIJING (Asian Metal) 18 Apr 23 - Discouraged by the poor sales performance and decreasing prices of steel, domestic steel mills required cutting purchasing prices of coke on Monday, and coking plants accepted. Presently, the mainstream prices of dry quenching metallurgical coke A13 S0.7 hover at RMB2,500-2,750/t (USD364-400/t) D/P, down by RMB100/t (USD15/t) from late last week. Insiders foresee further price decline next week seeing the pessimistic atmosphere in the market.
"We announced the decision to move down purchasing prices of coke by RMB100/t (USD15/t) on Monday, and coking plants accepted quickly seeing the decreasing prices of both downstream steel and upstream coal. We bought 3,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,720/t (USD396/t) delivered on Monday, while last bought 5,000t at RMB2,820/t (USD410/t) in the middle of last week," disclosed the purchasing official from a steel mill in North China. Attributing the price decline to the weakening steel market, the source disclosed that they face both capital and sales pressures at the moment and remain eager to cut production costs. "We believe prices of coke would go down further by RMB100/t (USD15/t) next week seeing the continuous price declines of coal and sufficient supply of coke," added the source.
Presently, the steel mill only holds around 3,000t of stocks, down from 14,000t in early March. Based on an annual consumption capacity of 650,000t, the steel mill would consume 53,000t of coke in April, similar to March. The consumption volume reached 150,000t in the first quarter of 2023, against 590,000t or so in 2022.
The sales official from a coking plant in North China confirms the price decline on Monday, quoting RMB2,530/t (USD368/t) EXW for dry quenching metallurgical coke A13 S0.7, while insisted on RMB2,630/t (USD383/t) late last week. Attributing the price decline to the continuous price decreases of coal, the source shows little confidence in the market prospect and worries prices of coke would go down further in the coming week. "Prices of coke decreased by about RMB150/t (USD22/t) in the past week, and we estimate that they would witness another markdown of RMB150/t (USD22/t) in the coming several days," revealed the source, adding that they struggle at the edge of suffering after this round of decline. In addition, he disclosed that the downward price trend of steel weakened the confidence of market participants to some degree.
Reporting an annual production capacity of 2.05 million tons, the coking plant would reach 150,000t in April, identical to March. The coking plant roughly produced 430,000t of coke in the first quarter of 2023 and 1.8 million tons in 2022, without any stock at the moment.
"We announced the decision to move down purchasing prices of coke by RMB100/t (USD15/t) on Monday, and coking plants accepted quickly seeing the decreasing prices of both downstream steel and upstream coal. We bought 3,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,720/t (USD396/t) delivered on Monday, while last bought 5,000t at RMB2,820/t (USD410/t) in the middle of last week," disclosed the purchasing official from a steel mill in North China. Attributing the price decline to the weakening steel market, the source disclosed that they face both capital and sales pressures at the moment and remain eager to cut production costs. "We believe prices of coke would go down further by RMB100/t (USD15/t) next week seeing the continuous price declines of coal and sufficient supply of coke," added the source.
Presently, the steel mill only holds around 3,000t of stocks, down from 14,000t in early March. Based on an annual consumption capacity of 650,000t, the steel mill would consume 53,000t of coke in April, similar to March. The consumption volume reached 150,000t in the first quarter of 2023, against 590,000t or so in 2022.
The sales official from a coking plant in North China confirms the price decline on Monday, quoting RMB2,530/t (USD368/t) EXW for dry quenching metallurgical coke A13 S0.7, while insisted on RMB2,630/t (USD383/t) late last week. Attributing the price decline to the continuous price decreases of coal, the source shows little confidence in the market prospect and worries prices of coke would go down further in the coming week. "Prices of coke decreased by about RMB150/t (USD22/t) in the past week, and we estimate that they would witness another markdown of RMB150/t (USD22/t) in the coming several days," revealed the source, adding that they struggle at the edge of suffering after this round of decline. In addition, he disclosed that the downward price trend of steel weakened the confidence of market participants to some degree.
Reporting an annual production capacity of 2.05 million tons, the coking plant would reach 150,000t in April, identical to March. The coking plant roughly produced 430,000t of coke in the first quarter of 2023 and 1.8 million tons in 2022, without any stock at the moment.
