Chinese coke prices flat
2024-04-17 08:30:24 [Print]
BEIJING (Asian Metal) 17 Apr 24 - Domestic coking plants raised the target selling prices of coke by RMB100-110/t (USD14-15/t) early this week boosted by the price increase of coal, but steel mills wait on sidelines. Currently, the prevailing prices of dry quenching metallurgical coke A13 S0.7 hover at RMB1,750-1,900/t (USD242-263/t) D/P, temporarily stable compared with late last week. As most steel mills might accept the target prices of coking plants, insiders believe prices of coke would go up in the following several days.
"We moved up the target selling prices of coke by RMB110/t (USD15/t) on Monday seeing the prices rebound of coal and steel, and steel mills might finally accept the price increase within this week," noted the sales official from a coking plant in Shanxi, offering RMB1,880/t (USD260/t) EXW D/P without concession for dry quenching metallurgical coke A13 S0.7 at present. He sold 5,000t of coke at RMB1,770/t (USD245/t) on Tuesday, and last sold 5,000t at the same price last Friday. According to him, as nearby coking plants hike production by 20%-30%, coal mines keep eager to lift prices this week, with the markup of around RMB50/t (USD7/t). Besides, traders turn to active in purchasing coke driven by the bullish atmosphere in the market. In addition, steel mills increase production seeing the recovering profits, which means the demand for coke improves.
Based on an annual production capacity of 2.05 million tons, the coking plant predicts to produce 120,000t of coke in April, up from 100,000t in March. It recorded the output of around 350,000t in Q1 of 2024 and 2.1 million tons in 2023. The coking plant does not hold any stocks for the moment.
The purchasing official from a steel mill in Hebei also believes prices of coke would go up by RMB100-110/t (USD14-15/t) in the forthcoming several days. "Prices of upstream coal and downstream steel rebounded in recent one week boosted by the bullish atmosphere in the market. Besides, holding low stocks, we have to enlarge purchase with the rising operating rates," explained the source, who bought 3,000t of dry quenching metallurgical coke A13 S0.7 at RMB1,860/t (USD257/t) delivered D/P on Tuesday and last bought 2,000t at the same price last Friday, while coking plants quote RMB1,970/t (USD272/t) right now. Nevertheless, the source does not believe prices of coke would edge up further after the increase this week upon the relatively low demand for steel.
Based on an annual consumption capacity of 650,000t, the steel mill would use 50,000t of coke in April, up from 40,000t in March. It roughly consumed 110,000t of coke in the first three months of 2024 and 510,000t in 2023. Presently, the mill holds around 14,000t in inventory.
"We moved up the target selling prices of coke by RMB110/t (USD15/t) on Monday seeing the prices rebound of coal and steel, and steel mills might finally accept the price increase within this week," noted the sales official from a coking plant in Shanxi, offering RMB1,880/t (USD260/t) EXW D/P without concession for dry quenching metallurgical coke A13 S0.7 at present. He sold 5,000t of coke at RMB1,770/t (USD245/t) on Tuesday, and last sold 5,000t at the same price last Friday. According to him, as nearby coking plants hike production by 20%-30%, coal mines keep eager to lift prices this week, with the markup of around RMB50/t (USD7/t). Besides, traders turn to active in purchasing coke driven by the bullish atmosphere in the market. In addition, steel mills increase production seeing the recovering profits, which means the demand for coke improves.
Based on an annual production capacity of 2.05 million tons, the coking plant predicts to produce 120,000t of coke in April, up from 100,000t in March. It recorded the output of around 350,000t in Q1 of 2024 and 2.1 million tons in 2023. The coking plant does not hold any stocks for the moment.
The purchasing official from a steel mill in Hebei also believes prices of coke would go up by RMB100-110/t (USD14-15/t) in the forthcoming several days. "Prices of upstream coal and downstream steel rebounded in recent one week boosted by the bullish atmosphere in the market. Besides, holding low stocks, we have to enlarge purchase with the rising operating rates," explained the source, who bought 3,000t of dry quenching metallurgical coke A13 S0.7 at RMB1,860/t (USD257/t) delivered D/P on Tuesday and last bought 2,000t at the same price last Friday, while coking plants quote RMB1,970/t (USD272/t) right now. Nevertheless, the source does not believe prices of coke would edge up further after the increase this week upon the relatively low demand for steel.
Based on an annual consumption capacity of 650,000t, the steel mill would use 50,000t of coke in April, up from 40,000t in March. It roughly consumed 110,000t of coke in the first three months of 2024 and 510,000t in 2023. Presently, the mill holds around 14,000t in inventory.
