China's coke exports plunge 36% y-o-y in August

Mysteel Global: China's exports of all types of coke including metallurgical coke took a hit in August, falling by 2.8% on month and by a huge 36% on year to about 556,299 tonnes (t), according to the latest statistics from the country's General Administration of Customs (GACC). For the first eight months of this year, China exported about 6.2 million tonnes (mnt) of coke, rising by 11.4% from the same period last year, the GACC data indicate.

Chinese coke exports experienced a clear downturn in August, partly due to mounting losses being incurred by coke producers when selling coke to domestic customers. This dampened their enthusiasm for production last month, with many producers slashing output to avoid deeper losses, which also reduced the volume available for export, sources said.

During August, China's total coke output decreased by 2.1% on year to about 40.89 mnt according to new data released by country's National Bureau of Statistics (NBS). The figure was also lower by 1.7% from July's output. The domestic output constraints impacted export shipments to China's key destination, Southeast Asia, where the coke export volume pulled back from July's six-month peak, Mysteel Global learnt.

In August, total coke shipments to the region retreated by 23% on month to reach 312,720 t. The volume was also lower by 10.7% from a year earlier. Indonesia, which accounted for the largest share of total Chinese coke exports at 40%, saw a 2.1% decline in shipments from July to 222,487 t in August, though the figure was still 54.6% higher on a yearly basis, the Customs data show.

Coke exports to Malaysia, China's second-largest coke buyer last month, slumped by 43.7% on month to about 75,671 tonnes. The volume also declined by 58.2% from a year earlier. Indian demand for Chinese coke also faltered in August, with shipments plummeting by 91.3% on year and 78.3% on month to just 15,191 t, according to the data.

Coke shipments to Japan and Vietnam followed a similar trajectory, falling by 54.5% and 76.5% on month respectively, to reach about 32,048 t and 9,895 t. Despite China's position as a low-cost supplier in the global coke market, subdued demand both domestically and globally weighed on export performance and prices last month, Mysteel Global observed.

As of 30 August, the export price of metallurgical coke (ash<12.5%, VM<1.5%, sulfur<0.65%, CSR>65%) under Mysteel's assessment slipped by $22/tonne on month to sit at $265/t FOB from East China's Qingdao Port.