Chinese Met Coke Prices Soften on Low Demand and Steel Output Cuts

Chinese met coke prices are continuously on downtrend since fourth week of June.

In China's domestic coke market, steel mills in Hebei have proposed reducing coke prices by USD 14-15/MT in a third round of price cuts that would total USD 43-44/MT since mid-June.

Market participants said the weakness in China's domestic coke price was driven by Tangshan output cuts, which have greatly dampened demand for met coke, and mills currently had sufficient coke inventories. "Moreover, we are celebrating the 70th anniversary (of the founding of the People's Republic of China) this year and there will be efforts to control air pollution leading up to October," a Tangshan-based trader said.

Met coal and blast furnace coke prices in seaborne and domestic Chinese markets have remained relatively high since 2016, with high spot market activity in China relative to other markets, and weaker spreads with lower quality coals such as semi-softs and high-volume crossover coals taking hold.

Price Assessments for Week 27 (01 July - 07 July 2019)

Prices for 64% CSR and the 62% CSR grades have fallen sharply by USD 7- 8/MT this week assessed at around USD 312/MT and USD 298/MT FOB China respectively from the rates that prevailed in the last week 26 (24 June - 30 June'19).

Indian met coke import prices are also down by USD 7-8/MT are currently hovering at around USD 326/MT for 64% CSR and the 62% CSR grades prices at around USD 312/MT on CNF India basis.