Chinese Met Coke Prices Decline Further on Weak Market Sentiments

Chinese met coke market looks weaker as prices are continuously showing downtrend starting June 2019.

The major reason behind the price drop can culminate as the announcement of Steel production cut by the Chinese government in major steelmaking regions of China in order to aid the air-pollution concerns.

Market participants are also showing mix views about the prices on the near term. Few people shared that they expect the market to show further weakness due to a major steel production cut in the Tangshan region (one of the major steel-producing regions in China).

Participants also shared that they are keeping a sharp eye on the possibilities of further price cuts. It entirely depends upon the steel mill margins and the demand and supply balance of the coke market.

Despite the announcement of steel production cuts in Tangshan, coking output is also being restricted in another region named Shanxi which is adding impact on the weakness of the coke market.

On the global side, Columbia is offering met coke at lower prices to increase the competition with Chinese met coke exporters. This may force Chinese coke export prices to decline further in order to stay competitive in the global market.

Price Assessments for Week 28 (01 July - 07 July 2019)

Prices for 64% CSR and the 62% CSR grades are down this week and currently assessed at around USD 308/MT and USD 294/MT FOB China respectively from the rates that prevailed in the last week 27 (01 July - 07 July'19).

Indian met coke import prices are also down and are currently hovering at around USD 322/MT for 64% CSR and the 62% CSR grades prices at around USD 308/MT on CNF India basis.