Chinese Met Coke Prices Continue Climbing on Production Cut Expectations

Chinese metallurgical coke prices have continued their upward momentum over the past week as the prices were supported by the ongoing environmental checks in major coke-producing areas of northern China.

Chinese domestic coke prices had risen by about Yuan 120-150/MT week on week, while coke inventories remained low.

With coke prices trending upward, seller sources expect the spread between Chinese 64% CSR and 62% CSR met coke to widen, as better quality coke supply remains strained given coke production cuts in northern China.

Meanwhile in India, buyers were heard to be in wait-and-see mode; most of them have put off buying of Chinese coke for now.

While it is unlikely that the Chinese met coke market will correct downwards, prices may see new highs as coke supply comes under pressure.

PRICE ASSESSMENTS

The latest import offers for the 64% CSR met coke are assessed at around USD 382/MT FOB China, up by about USD 16.50/MT than the rates that prevailed in the week gone by.

Similarly, offers for the 62% CSR met coke has increased to around USD 373/MT FOB China.

For Indian buyers, these offers amount to USD 399/MT and USD 390/MT respectively on CNF India basis.

Source: CoalMint Research

Nevertheless, India's domestically produced met coke prices have remained unchanged over the past week.

The current ex-works prices of the blast furnace grade are hovering around INR 26,000/MT (east coast) and between INR 27,000 and 28,000/MT (west coast).