Chinese coke prices decline
2024-03-13 08:34:19 [Print]
BEIJING (Asian Metal) 13 Mar 24 - After the decline of around RMB200/t (USD28/t) in the past three weeks, domestic steel mills required cutting purchasing prices of coke further by RMB100-110/t (USD14-15/t) on Monday, and coking plants accepted the price decline on Tuesday. Presently, the mainstream prices of dry quenching metallurgical coke A13 S0.7 hover at 2,150-2,250/t (USD300-313/t) D/P, down by RMB110/t (USD15/t) compared with Monday. Insiders foresee stable prices of coke in the coming several days upon the wait-and-see attitudes in the market.
"Steel mills required cutting purchasing prices of coke by RMB110/t (USD15/t) on Monday, and we had to accept on Tuesday dragged by the decreasing prices of coal and steel," revealed the sales official from a coking plant in Jiangsu, quoting RMB2,210/t (USD308/t) D/P EXW with the concession of RMB50/t (USD7/t) for dry quenching metallurgical coke A13 S0.7, and he last sold 5,000t of the material at RMB2,270/t (USD316/t) on Monday. According to him, prices of coal dropped by RMB100/t (USD14/t) on Monday after the total markdown of around RMB450/t (USD63/t) in the past three weeks. Besides, those of steel decreased by around RMB80/t (USD11/t) since late last week, both weakening the confidence of market participants of coke. In the meantime, the source disclosed that regular steel mills slow down purchasing this week dragged by the capital pressures. Adopting wait-and-see attitude towards the market prospect, he deems prices of coke would stabilize in the coming several days.
Reporting an annual production capacity of 2.5 million tons, the coking plant estimates that the output would achieve 180,000t in March, similar to February. It produced about 2.2 million tons of coke in 2023, without any stocks for the moment.
The purchasing official from a steel mill in Hebei confirms the decreasing prices, with those of dry quenching metallurgical coke A13 S0.7 at RMB2,330/t (USD325/t) D/P delivered, while he last bought 3,000t of the material at RMB2,440/t (USD340/t) on Monday. Attributing the price decline to the bearish atmosphere in the market, the source pointed out that the poor sales performance and slow improvement of downstream of steel weakened the confidence of market participants of coke to a large extent. Besides, more and more steel mills report capital pressures discouraged by the high stocks of steel. "The total markdown of RMB550/t (USD77/t) of coal forced coking plants to accept the price decrease of coke quickly," added the source. In the meantime, he disclosed that the mill halted one blast furnace in early March and will resume production in early April, with the daily coke consumption reduced by 3,000t. The source believes prices of coke would stop decreasing and keep flat in the following several days upon the resistance for further price cut from coking plants.
Based an annual consumption capacity of 1.5 million tons, the steel mill might consume about 80,000t of coke in March, down from 110,000t in February. It roughly used 1.3 million tons of coke in 2023, holding about 40,000t in stock at present.
"Steel mills required cutting purchasing prices of coke by RMB110/t (USD15/t) on Monday, and we had to accept on Tuesday dragged by the decreasing prices of coal and steel," revealed the sales official from a coking plant in Jiangsu, quoting RMB2,210/t (USD308/t) D/P EXW with the concession of RMB50/t (USD7/t) for dry quenching metallurgical coke A13 S0.7, and he last sold 5,000t of the material at RMB2,270/t (USD316/t) on Monday. According to him, prices of coal dropped by RMB100/t (USD14/t) on Monday after the total markdown of around RMB450/t (USD63/t) in the past three weeks. Besides, those of steel decreased by around RMB80/t (USD11/t) since late last week, both weakening the confidence of market participants of coke. In the meantime, the source disclosed that regular steel mills slow down purchasing this week dragged by the capital pressures. Adopting wait-and-see attitude towards the market prospect, he deems prices of coke would stabilize in the coming several days.
Reporting an annual production capacity of 2.5 million tons, the coking plant estimates that the output would achieve 180,000t in March, similar to February. It produced about 2.2 million tons of coke in 2023, without any stocks for the moment.
The purchasing official from a steel mill in Hebei confirms the decreasing prices, with those of dry quenching metallurgical coke A13 S0.7 at RMB2,330/t (USD325/t) D/P delivered, while he last bought 3,000t of the material at RMB2,440/t (USD340/t) on Monday. Attributing the price decline to the bearish atmosphere in the market, the source pointed out that the poor sales performance and slow improvement of downstream of steel weakened the confidence of market participants of coke to a large extent. Besides, more and more steel mills report capital pressures discouraged by the high stocks of steel. "The total markdown of RMB550/t (USD77/t) of coal forced coking plants to accept the price decrease of coke quickly," added the source. In the meantime, he disclosed that the mill halted one blast furnace in early March and will resume production in early April, with the daily coke consumption reduced by 3,000t. The source believes prices of coke would stop decreasing and keep flat in the following several days upon the resistance for further price cut from coking plants.
Based an annual consumption capacity of 1.5 million tons, the steel mill might consume about 80,000t of coke in March, down from 110,000t in February. It roughly used 1.3 million tons of coke in 2023, holding about 40,000t in stock at present.
