Chinese coke prices down
2024-03-21 08:35:00 [Print]
BEIJING (Asian Metal) 21 Mar 24 - Domestic coke prices witnessed the markdown of RMB100-110/t (USD14-15/t) on Wednesday after the decrease of RMB300-330/t (USD42-46/t) in the past one month. The current prevailing prices of metallurgical coke A13 S0.7 stand at RMB1,950-2,200/t (USD271-306/t) D/P. Insiders foresee stable prices of coke in the forthcoming several days upon the price rebound of downstream steel.
"Northern steel mills required cutting purchasing prices of coke by RMB100-110/t (USD14-15/t) on Tuesday, and coking plants finally accepted the price decrease on Wednesday. Now, the price for dry quenching metallurgical coke A13 S0.7 hovers at RMB2,170/t (USD301/t) delivered T/T 180 days," disclosed the purchasing official from a steel mill in Anhui. The mill did not purchase coke on Wednesday, and last bought 3,000t at RMB2,280/t (USD317/t) on Monday. According to him, the market is full of bearish atmosphere dragged by the high inventories and soft demand of steel. Besides, the demand for coke shrank with more and more steel mills cutting production dragged by the sales and capital pressures. In addition, prices of coal show a downward trend. Given the low operating rates of coking plants, the source believes prices of coke might stabilize in the following several days but may decrease further by RMB50/t (USD7/t) next week.
Based on an annual coke consumption capacity of 1.9 million tons, the steel mill would consume about 110,000t of coke in March, similar to February. The mill consumed about 1.8 million tons of coke in 2023 and would use 350,000t of coke in the first quarter of 2024. It holds about 110,000t in stock at present.
The sales official from a coking plant in Henan confirms the price decline of coke, quoting RMB1,950/t (USD271/t) D/P EXW without concession for wet quenching metallurgical coke A13 S0.7. Attributing the price decline to the shrinking demand from steel mills and the pessimistic atmosphere in the market, the source stated that more and more steel mills slowed down production discouraged by the poor sales performance as well as the losses, and endeavoured to reduce production costs. Besides, prices of coal keep decreasing. "Actually, we do not suffer much losses now following the continuous price declines of coal, but we dare not resume normal production seeing the reduced demand," added the source, who cut production by 30% since the middle of February. The source did not conclude any deals on Wednesday and sold 3,000t of coke at RMB2,050/t (USD285/t) on Tuesday. He predicts stable prices of coke in the upcoming several days given the price rebound of downstream steel, but he shows little confidence in the market before April.
With an annual production capacity of 1.3 million tons, the coking plant estimates that the output would achieve about 60,000t in March, in line with February. It roughly produced 980,000t of coke in 2023 and might produce 200,000t of coke in the first three months of 2024. The coking plant holds no stock right now.
"Northern steel mills required cutting purchasing prices of coke by RMB100-110/t (USD14-15/t) on Tuesday, and coking plants finally accepted the price decrease on Wednesday. Now, the price for dry quenching metallurgical coke A13 S0.7 hovers at RMB2,170/t (USD301/t) delivered T/T 180 days," disclosed the purchasing official from a steel mill in Anhui. The mill did not purchase coke on Wednesday, and last bought 3,000t at RMB2,280/t (USD317/t) on Monday. According to him, the market is full of bearish atmosphere dragged by the high inventories and soft demand of steel. Besides, the demand for coke shrank with more and more steel mills cutting production dragged by the sales and capital pressures. In addition, prices of coal show a downward trend. Given the low operating rates of coking plants, the source believes prices of coke might stabilize in the following several days but may decrease further by RMB50/t (USD7/t) next week.
Based on an annual coke consumption capacity of 1.9 million tons, the steel mill would consume about 110,000t of coke in March, similar to February. The mill consumed about 1.8 million tons of coke in 2023 and would use 350,000t of coke in the first quarter of 2024. It holds about 110,000t in stock at present.
The sales official from a coking plant in Henan confirms the price decline of coke, quoting RMB1,950/t (USD271/t) D/P EXW without concession for wet quenching metallurgical coke A13 S0.7. Attributing the price decline to the shrinking demand from steel mills and the pessimistic atmosphere in the market, the source stated that more and more steel mills slowed down production discouraged by the poor sales performance as well as the losses, and endeavoured to reduce production costs. Besides, prices of coal keep decreasing. "Actually, we do not suffer much losses now following the continuous price declines of coal, but we dare not resume normal production seeing the reduced demand," added the source, who cut production by 30% since the middle of February. The source did not conclude any deals on Wednesday and sold 3,000t of coke at RMB2,050/t (USD285/t) on Tuesday. He predicts stable prices of coke in the upcoming several days given the price rebound of downstream steel, but he shows little confidence in the market before April.
With an annual production capacity of 1.3 million tons, the coking plant estimates that the output would achieve about 60,000t in March, in line with February. It roughly produced 980,000t of coke in 2023 and might produce 200,000t of coke in the first three months of 2024. The coking plant holds no stock right now.
