Chinese Met Coke Prices Uptick as Coking Coal Prices Strengthens

Chinese domestic metallurgical coke prices have shown an uptick in the fourth week of April amid China-bound coking coal prices strengthens.

Prices for 64% CSR and the 62% CSR grades are currently assessed at around USD 324/MT and USD 309/MT FOB China respectively slightly up from the rates that prevailed in the last week (22 Apr - 28 Apr'19).

Few market participants shared that there is an upsurge in domestic coke prices due to the sudden increase in Australian premium hard coking coal prices. This was due to the import restrictions imposed on seaborne coking coals at various ports in China since February, which have prolonged the customs clearance process and effectively resulted in a longer discharge time for outbound cargoes.

On the other side, few steelmakers also shared that the first round of coke price uptick was proposed approximately two weeks ago, but saw little development as steelmakers adopted a wait-and-see approach. However, they were still unsure if there would be any further price gains in the near term. They also shared that "Coke inventory at major Chinese ports are still high". Coke inventory at major Chinese ports was 4.34 MnT as on April 26, 2019, rising 90,000 MT from April 19.

Additionally, Indian met coke import prices also moved up slightly and currently hovering at around USD 338/MT for 64% CSR and the 62% CSR grades prices at around USD 323/MT on CNF India basis.