Chinese coke prices edge down
2023-04-24 08:19:25 [Print]
BEIJING (Asian Metal) 24 Apr 23 - Prices of coke decreased by RMB100/t (USD15/t) again on Sunday after the total markdown of RMB200-240/t (USD30-35/t) in the past three weeks. The current prevailing prices of metallurgical coke A13 S0.7 hover at RMB2,300-2,450/t (USD334-355/t) D/P. Insiders foresee further price decline in the coming several seeing the bearish atmosphere in the market.
"Discouraged by the price drop of steel of around RMB200/t (USD30/t) in the past two days, we announced the decision to move down purchasing prices of coke by RMB100/t (USD15/t) on Saturday, and coking plants accepted on Sunday. Now, the delivered price of metallurgical coke A13 S0.7 stands at RMB2,300/t (USD334/t), and we last bought 5,000t at RMB2,400/t (USD348/t) on Friday," disclosed the purchasing official from a steel mill in North China. According to him, facing sales pressure and losses due to the decreasing prices of steel, the mill endeavors to cut purchasing prices of raw materials. Besides, prices of coal witnessed the markdown of around RMB150/t (USD22/t) on Friday, forcing coking plants to accept the price decline of coke. Adopting pessimistic attitude towards the market prospect, the mill just holds 7-day stock of coke right now, while usually builds 10-day consumption of coke. The source deems prices of coke would go down further in the upcoming several days seeing the decreasing prices of coal and steel.
Based on an annual consumption capacity of 2.2 million tons, the steel mill would consume 120,000t of coke in April, down from 150,000t in March. It roughly used 500,000t of coke in the first quarter of 2023, against 2 million tons or so in 2022. Presently, the steel mill holds about 35,000t of stocks.
The sales official from a coking plant in Central China confirms the decreasing prices of coke. Quoting RMB2,450/t (USD355/t) for metallurgical coke A13 S0.7, he could provide the discount of no more than RMB20/t (USD3/t) for regular clients, while refused to sell at prices below RMB2,550/t (USD370/t) on Friday. Attributing the price decrease to the declining prices of coal and steel, the source disclosed that prices of coal and steel dropped by RMB150-200/t (USD22-30/t) in the past two days. Besides, with more and more steel mills cutting production, the demand for coke reduces. "A regular client just bought 3,000t at RMB2,430/t (USD353/t) on Sunday, while he at least purchased 5,000t at one single time previously," complained the source. Given the pessimistic atmosphere in the market, he worries prices of coke would decrease by another RMB100/t (USD15/t) in the upcoming several days.
Reporting an annual production capacity of 1.3 million tons, the coking plant estimates that the output of coke would reach 70,000t in April, similar to March. It recorded the output of around 210,000t in the first quarter of 2023, against 910,000t more or less in 2022, without any stock at the moment.
"Discouraged by the price drop of steel of around RMB200/t (USD30/t) in the past two days, we announced the decision to move down purchasing prices of coke by RMB100/t (USD15/t) on Saturday, and coking plants accepted on Sunday. Now, the delivered price of metallurgical coke A13 S0.7 stands at RMB2,300/t (USD334/t), and we last bought 5,000t at RMB2,400/t (USD348/t) on Friday," disclosed the purchasing official from a steel mill in North China. According to him, facing sales pressure and losses due to the decreasing prices of steel, the mill endeavors to cut purchasing prices of raw materials. Besides, prices of coal witnessed the markdown of around RMB150/t (USD22/t) on Friday, forcing coking plants to accept the price decline of coke. Adopting pessimistic attitude towards the market prospect, the mill just holds 7-day stock of coke right now, while usually builds 10-day consumption of coke. The source deems prices of coke would go down further in the upcoming several days seeing the decreasing prices of coal and steel.
Based on an annual consumption capacity of 2.2 million tons, the steel mill would consume 120,000t of coke in April, down from 150,000t in March. It roughly used 500,000t of coke in the first quarter of 2023, against 2 million tons or so in 2022. Presently, the steel mill holds about 35,000t of stocks.
The sales official from a coking plant in Central China confirms the decreasing prices of coke. Quoting RMB2,450/t (USD355/t) for metallurgical coke A13 S0.7, he could provide the discount of no more than RMB20/t (USD3/t) for regular clients, while refused to sell at prices below RMB2,550/t (USD370/t) on Friday. Attributing the price decrease to the declining prices of coal and steel, the source disclosed that prices of coal and steel dropped by RMB150-200/t (USD22-30/t) in the past two days. Besides, with more and more steel mills cutting production, the demand for coke reduces. "A regular client just bought 3,000t at RMB2,430/t (USD353/t) on Sunday, while he at least purchased 5,000t at one single time previously," complained the source. Given the pessimistic atmosphere in the market, he worries prices of coke would decrease by another RMB100/t (USD15/t) in the upcoming several days.
Reporting an annual production capacity of 1.3 million tons, the coking plant estimates that the output of coke would reach 70,000t in April, similar to March. It recorded the output of around 210,000t in the first quarter of 2023, against 910,000t more or less in 2022, without any stock at the moment.
