Chinese coke prices stable
2023-03-23 08:20:26 [Print]
BEIJING (Asian Metal) 23 Mar 23 - Prices of coke continued stable this week in the domestic market, amid participants' wait-and-see attitudes. Presently, the mainstream prices of dry quenching metallurgical coke A13 S0.7 stand at RMB2,700-2,900/t (USD392-421/t) D/P EXW, and those of dry quenching metallurgical coke A12.5 S0.7 stand at RMB3,000-3,200/t (USD436-465/t) D/P EXW, both similar to late last week. Insiders foresee flat prices in the coming several days seeing the steady market.
"Following the price decline of upstream coal and downstream steel, some steel mills plan to cut prices of coke this week after the stabilization since January 11, but we tend to maintain prices flat," noted the sales official from a coking plant in North China. Quoting RMB2,820/t (USD410/t) without concession for dry quenching metallurgical coke A13 S0.7, the source disclosed that regular steel mills purchase normally, with low stocks in hands. On Wednesday, the source sold around 5,000t of the material at RMB2,820/t (USD410/t). "Regular steel mills report tight capital flow dragged by the poor sales performance of steel, and thus keep eager to reduce production costs, but we deem it's hard for prices of coke to go down as the decreasing prices would in turn force coking plants to cut production," added the source, believing prices of coke would go on stable in the forthcoming several days.
With an annual production capacity of 2.1 million tons, the coking plant might produce 160,000t of coke in March, up from 120,000t in February. The output in the first quarter of 2023 would achieve 420,000t, against 1.54 million tons in 2022. The coking plant does not hold any stock at present.
Another local coking plant confirms stable prices of coke, but worries about a price decline seeing the decreasing prices of coal and the poor sales performance of steel. "Regular steel mills have not required cutting price of coke yet, but if prices of coal keep decreasing, those of coke might decline by RMB110/t (USD16/t)," stated the source, offering RMB3,030/t (USD440/t) without concession for dry quenching metallurgical coke A12.5 S0.7. According to him, the market witnesses narrow balance now, coupled with wait-and-see attitudes of both steel mills and coking plants, and when the negative news accumulated, prices of coke would decrease. "After all, coking plants maintain high operation rates now," added the source, who sold 10,000t of the material at RMB3,030/t (USD440/t) on Tuesday and did not close any deals on Wednesday.
Reporting an annual production capacity of 3.6 million tons, the coking plant would produce 220,000t of coke in March, against 200,000t in February. The output in the first quarter of 2023 might reach 660,000t, against 3.2 million tons in 2022. The coking plant holds no stock right now.
"Following the price decline of upstream coal and downstream steel, some steel mills plan to cut prices of coke this week after the stabilization since January 11, but we tend to maintain prices flat," noted the sales official from a coking plant in North China. Quoting RMB2,820/t (USD410/t) without concession for dry quenching metallurgical coke A13 S0.7, the source disclosed that regular steel mills purchase normally, with low stocks in hands. On Wednesday, the source sold around 5,000t of the material at RMB2,820/t (USD410/t). "Regular steel mills report tight capital flow dragged by the poor sales performance of steel, and thus keep eager to reduce production costs, but we deem it's hard for prices of coke to go down as the decreasing prices would in turn force coking plants to cut production," added the source, believing prices of coke would go on stable in the forthcoming several days.
With an annual production capacity of 2.1 million tons, the coking plant might produce 160,000t of coke in March, up from 120,000t in February. The output in the first quarter of 2023 would achieve 420,000t, against 1.54 million tons in 2022. The coking plant does not hold any stock at present.
Another local coking plant confirms stable prices of coke, but worries about a price decline seeing the decreasing prices of coal and the poor sales performance of steel. "Regular steel mills have not required cutting price of coke yet, but if prices of coal keep decreasing, those of coke might decline by RMB110/t (USD16/t)," stated the source, offering RMB3,030/t (USD440/t) without concession for dry quenching metallurgical coke A12.5 S0.7. According to him, the market witnesses narrow balance now, coupled with wait-and-see attitudes of both steel mills and coking plants, and when the negative news accumulated, prices of coke would decrease. "After all, coking plants maintain high operation rates now," added the source, who sold 10,000t of the material at RMB3,030/t (USD440/t) on Tuesday and did not close any deals on Wednesday.
Reporting an annual production capacity of 3.6 million tons, the coking plant would produce 220,000t of coke in March, against 200,000t in February. The output in the first quarter of 2023 might reach 660,000t, against 3.2 million tons in 2022. The coking plant holds no stock right now.
