Chinese coking plants pessimistic
2023-03-29 08:17:42 [Print]
BEIJING (Asian Metal) 29 Mar 23 - Discouraged by the weakening market of steel, most domestic coking plants show little confidence in the market prospect and worried about a price decline this week. The current prevailing prices of dry quenching metallurgical coke A13 S0.7 stand at RMB2,700-2,950/t (USD392-429/t) D/P EXW, and those of wet quenching metallurgical coke A13.5 S0.7 stand at RMB2,400-2,600/t (USD349-378/t) D/P EXW, both the same as late last week. Insiders foresee narrowly stable prices of coke in the coming several days upon the watchful atmosphere in the market.
"More and more steel mills showed intention to cut prices of coke since last week discouraged by the prices decline of steel and coal. Besides, most coking plants maintain high operate rate and the supply of coke remains sufficient. We believe prices of coke would decrease by RMB100-110/t (USD15-16/t) if those of steel continue going down," noted the sales official from a coking plant in North China. Benefited from profits, the coking plant increased the operation rate to 100% this month from 85% in February. In the meantime, the source pointed out steel mills purchase coke normally, with low stocks in hands. "A regular buyer bought 10,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,920/t (USD424/t) on Tuesday, and he last bought 10,000t at the same price in the middle of last week," added the source.
Based on an annual production capacity of 5.6 million tons, the coking plant might produce 1.26 million tons of coke in the first quarter of 2023, against 5 million tons or so in 2022. It would produce 460,000t of coke in March, up from 400,000t in February, without any stock right now.
Another coking plant in Northeast China also shows little confidence in the market prospect. "We are waiting for the new price policy for coal from Longmay Mining Group now. If prices of coal go down further on April 1, steel mills would surely cut down prices of coke," revealed a sales official from the coking plant, quoting RMB2,410/t (USD350/t) without concession for wet quenching metallurgical coke A13.5 S0.7. In the meantime, the source stated that the coking plant cut production to 35% this month from 50% in February dragged by the losses of around RMB300/t (USD44/t). "Reporting tight capital flow dragged by the slow sales of steel, steel mills endeavor to cut stocks of coke now," added the source, who sold 3,000t of coke at RMB2,410/t (USD350/t) on Tuesday. The source predicts stable prices of coke in the upcoming several days seeing the watchful attitudes of steel mills.
With an annual production capacity of 1.8 million tons, the coking plant estimates that the output of coke would reduce to 50,000t in March from 80,000t in February. The coking plant might produce 210,000t of coke in the first quarter of 2023, against 640,000t more or less in 2022, holding no stock at present.
"More and more steel mills showed intention to cut prices of coke since last week discouraged by the prices decline of steel and coal. Besides, most coking plants maintain high operate rate and the supply of coke remains sufficient. We believe prices of coke would decrease by RMB100-110/t (USD15-16/t) if those of steel continue going down," noted the sales official from a coking plant in North China. Benefited from profits, the coking plant increased the operation rate to 100% this month from 85% in February. In the meantime, the source pointed out steel mills purchase coke normally, with low stocks in hands. "A regular buyer bought 10,000t of dry quenching metallurgical coke A13 S0.7 at RMB2,920/t (USD424/t) on Tuesday, and he last bought 10,000t at the same price in the middle of last week," added the source.
Based on an annual production capacity of 5.6 million tons, the coking plant might produce 1.26 million tons of coke in the first quarter of 2023, against 5 million tons or so in 2022. It would produce 460,000t of coke in March, up from 400,000t in February, without any stock right now.
Another coking plant in Northeast China also shows little confidence in the market prospect. "We are waiting for the new price policy for coal from Longmay Mining Group now. If prices of coal go down further on April 1, steel mills would surely cut down prices of coke," revealed a sales official from the coking plant, quoting RMB2,410/t (USD350/t) without concession for wet quenching metallurgical coke A13.5 S0.7. In the meantime, the source stated that the coking plant cut production to 35% this month from 50% in February dragged by the losses of around RMB300/t (USD44/t). "Reporting tight capital flow dragged by the slow sales of steel, steel mills endeavor to cut stocks of coke now," added the source, who sold 3,000t of coke at RMB2,410/t (USD350/t) on Tuesday. The source predicts stable prices of coke in the upcoming several days seeing the watchful attitudes of steel mills.
With an annual production capacity of 1.8 million tons, the coking plant estimates that the output of coke would reduce to 50,000t in March from 80,000t in February. The coking plant might produce 210,000t of coke in the first quarter of 2023, against 640,000t more or less in 2022, holding no stock at present.
