Chinese coke prices to go down
2024-04-09 08:20:32 [Print]
BEIJING (Asian Metal) 9 Apr 24 - On Monday, domestic steel mills required cutting purchasing prices of coke by RMB100-110/t (USD14-15/t), and coking plants might have to accept on Tuesday. The present mainstream prices of dry quenching metallurgical coke A13 S0.7 stand at RMB2,000-2,100/t (USD276-290/t) D/P delivered and those of dry quenching metallurgical coke A12.5 S0.7 hover at RMB2,100-2,200/t (USD290-304/t) D/P EXW. Insiders foresee decreasing prices of coke on Tuesday.
"We announced the decision to move down purchasing prices of dry quenching metallurgical coke A13 S0.7 by RMB110/t (USD15/t) on Monday, and regular coking plants may accept the price cut on Tuesday," disclosed the purchasing official from a steel mill in Hebei, who bought 3,000t of the material at RMB2,010/t (USD278/t) D/P delivered last Sunday. According to him, prices of coal witnessed the further markdown of around RMB50/t (USD7/t) in recent one week after the total decline of around RMB750/t (USD104/t) in the past two months. Besides, reporting profits, coking plants cutting production in the first quarter accelerated production since early April. However, the source does not think prices of coke would edge down further after the drop this week upon the rising production enthusiasms of steel mills.
Reporting an annual consumption capacity of 1.5 million tons, the steel mill estimates that the coke consumption volume would achieve about 120,000t in April, up from 80,000t in March. It consumes approximately 300,000t in the first quarter of 2024 and 1.3 million tons in 2023. Presently, the steel mill holds around 48,000t in inventory.
The sales official from a coking plant in Hebei confirms the potential price decline of coke, quoting RMB2,150/t (USD297/t) D/P EXW for dry quenching metallurgical coke A12.5 S0.7 right now. "Steel mills in North China keep eager to cut prices of coke seeing the downward price trend of coal, while those in East China tend to maintain prices stable seeing the low stocks," revealed the source. According to him, prices of coke might finally decline this week dragged by the slow market of steel, but they remain unlikely to edge down further upon the rising demand from steel mills. "Regular steel mills became more active in purchasing coke since early this month, and we sold about 10,000t of coke at RMB2,150/t (USD297/t) last Sunday, while just sold 5,000t a day in the middle of March," added the source.
Based on an annual production capacity of 1.6 million tons, the coking plant might produce 120,000t of coke in April, up from 100,000t in March. It recorded the output of around 250,000t in the first three months of 2024 and 1.1 million tons or so in 2023. The coking plant does not hold any stocks for the moment.
"We announced the decision to move down purchasing prices of dry quenching metallurgical coke A13 S0.7 by RMB110/t (USD15/t) on Monday, and regular coking plants may accept the price cut on Tuesday," disclosed the purchasing official from a steel mill in Hebei, who bought 3,000t of the material at RMB2,010/t (USD278/t) D/P delivered last Sunday. According to him, prices of coal witnessed the further markdown of around RMB50/t (USD7/t) in recent one week after the total decline of around RMB750/t (USD104/t) in the past two months. Besides, reporting profits, coking plants cutting production in the first quarter accelerated production since early April. However, the source does not think prices of coke would edge down further after the drop this week upon the rising production enthusiasms of steel mills.
Reporting an annual consumption capacity of 1.5 million tons, the steel mill estimates that the coke consumption volume would achieve about 120,000t in April, up from 80,000t in March. It consumes approximately 300,000t in the first quarter of 2024 and 1.3 million tons in 2023. Presently, the steel mill holds around 48,000t in inventory.
The sales official from a coking plant in Hebei confirms the potential price decline of coke, quoting RMB2,150/t (USD297/t) D/P EXW for dry quenching metallurgical coke A12.5 S0.7 right now. "Steel mills in North China keep eager to cut prices of coke seeing the downward price trend of coal, while those in East China tend to maintain prices stable seeing the low stocks," revealed the source. According to him, prices of coke might finally decline this week dragged by the slow market of steel, but they remain unlikely to edge down further upon the rising demand from steel mills. "Regular steel mills became more active in purchasing coke since early this month, and we sold about 10,000t of coke at RMB2,150/t (USD297/t) last Sunday, while just sold 5,000t a day in the middle of March," added the source.
Based on an annual production capacity of 1.6 million tons, the coking plant might produce 120,000t of coke in April, up from 100,000t in March. It recorded the output of around 250,000t in the first three months of 2024 and 1.1 million tons or so in 2023. The coking plant does not hold any stocks for the moment.
