Chinese coke price edge up
2024-04-24 08:28:21 [Print]
BEIJING (Asian Metal) 24 Apr 24 - After the price increase in the past week, prices of coke witness the further markup of RMB100-110/t (USD14-15/t) early this week boosted by the rising prices of coal, and steel mills purchase normally. Presently, the mainstream prices of dry quenching metallurgical coke A13 S0.7 hover at RMB1,900-2,160/t (USD262-298/t) D/P. Insiders foresee firm prices in the following several days upon the steady market.
"Stimulated by the quick price rise of coal, we lifted prices of coke further by RMB110/t (USD15/t) early this week, and we believe prices of coke would go up further before the end of April and keep temporarily flat in the following two or three days," noted the sales official from a coking plant in Jiangsu, quoting RMB2,160/t (USD298/t) without concession EXW D/P for dry quenching metallurgical coke A13 S0.7 at present. He sold 10,000t of the material at RMB2,160/t (USD298/t) on Tuesday, and last sold 10,000t at RMB2,050/t (USD283/t) late last week. According to him, prices of coal rose by about RMB200/t (USD28/t) last week. Besides, steel mills expand production stimulated by the spirally upward price trend of steel, and the demand for coke recovers. In addition, the market is full of bullish atmosphere.
Based on an annual production capacity of 2.5 million tons, the coking plant might produce 150,000t of coke in April, down from 180,000t in March. It recorded the output of around 2.2 million tons in 2023 and 540,000t in the first quarter of 2024. The coking plant does not hold any inventories right now.
"Regular clients informed us about the price rise of coke last Sunday, and we finally accepted the price increase on Monday. We bought 5,000t of dry quenching metallurgical coke A13 S0.7 at RMB1,900/t (USD262/t) delivered D/P on Tuesday, and last purchased 5,000t at RMB1,790/t (USD247/t) last Friday," noted the purchasing official from a steel mill in Hebei. Attributing the price rise to the increasing prices of coal and the recovering confidence of market participants, the source points out that the improving market performance of downstream steel encourages coking plants to lift prices of coke. In addition, discouraged by the quick price rise of coal, coking plants suffer losses and keep eager to transfer the production cost pressures to steel mills. The source believes prices of coke would level off in the following several days but might witness a further markup of RMB100-110/t (USD14-15/t) by the end of April.
Presently, the steel mill holds around 40,000t in stock, down from 48,000t early this month. With an annual consumption capacity of 1.5 million tons, the steel mill predicts to use 120,000t of coke in April, against 80,000t in March. It roughly consumed 300,000t of coke from January to March of 2024 and 1.3 million tons in 2023.
"Stimulated by the quick price rise of coal, we lifted prices of coke further by RMB110/t (USD15/t) early this week, and we believe prices of coke would go up further before the end of April and keep temporarily flat in the following two or three days," noted the sales official from a coking plant in Jiangsu, quoting RMB2,160/t (USD298/t) without concession EXW D/P for dry quenching metallurgical coke A13 S0.7 at present. He sold 10,000t of the material at RMB2,160/t (USD298/t) on Tuesday, and last sold 10,000t at RMB2,050/t (USD283/t) late last week. According to him, prices of coal rose by about RMB200/t (USD28/t) last week. Besides, steel mills expand production stimulated by the spirally upward price trend of steel, and the demand for coke recovers. In addition, the market is full of bullish atmosphere.
Based on an annual production capacity of 2.5 million tons, the coking plant might produce 150,000t of coke in April, down from 180,000t in March. It recorded the output of around 2.2 million tons in 2023 and 540,000t in the first quarter of 2024. The coking plant does not hold any inventories right now.
"Regular clients informed us about the price rise of coke last Sunday, and we finally accepted the price increase on Monday. We bought 5,000t of dry quenching metallurgical coke A13 S0.7 at RMB1,900/t (USD262/t) delivered D/P on Tuesday, and last purchased 5,000t at RMB1,790/t (USD247/t) last Friday," noted the purchasing official from a steel mill in Hebei. Attributing the price rise to the increasing prices of coal and the recovering confidence of market participants, the source points out that the improving market performance of downstream steel encourages coking plants to lift prices of coke. In addition, discouraged by the quick price rise of coal, coking plants suffer losses and keep eager to transfer the production cost pressures to steel mills. The source believes prices of coke would level off in the following several days but might witness a further markup of RMB100-110/t (USD14-15/t) by the end of April.
Presently, the steel mill holds around 40,000t in stock, down from 48,000t early this month. With an annual consumption capacity of 1.5 million tons, the steel mill predicts to use 120,000t of coke in April, against 80,000t in March. It roughly consumed 300,000t of coke from January to March of 2024 and 1.3 million tons in 2023.
