Mysteel: China's coke exports drop 32% y-o-y in Sep'24
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China's exports of all types of coke including metallurgical coke remained at low levels in September, down by 0.6% on month and by a large 31.7% on year to about 553,123 tonnes, according to the latest statistics from the country's General Administration of Customs (GACC).
Additionally, Beijing's new stimulus moves to revitalize its property market in September have also contributed to steelmakers' higher appetite for the steelmaking input, resulting in decreased supplies for overseas buyers, Mysteel learned from sources.
During September, China's total coke output decreased by 3.8% on month to 39.32 million tonnes, which was also lower by 5.3% on year, according to new data released by China's National Bureau of Statistics.
Meanwhile, Chinese coke continued to face strong competition from cheap Indonesian coke in the global market, with lower seaborne coking coal prices contributing to lower costs. This has also led to the decline in China's coke exports throughout last month.
In September, China's coke exports to its largest buyer, Southeast Asia, fell for the second consecutive month by 33.8% to about 206,902 tonnes. This figure was also 42.3% lower compared to the same period last year.
Notably, China's coke exports to Indonesia decreased by 20.4% from August and were also 34.1% lower than in September last year to sit at 177,085 tonnes.
Similarly, exports to Malaysia also slumped in September, with only 19,287 tonnes of coke shipped to the country, down by 33.8% from a month earlier and 42.3% from a year earlier.
However, Indian demand for Chinese coke picked up in September, with shipments soaring by 77.6% on year and a hefty 448% on month to 83,252 tonnes, according to the data.
Coke shipments to Japan and South Korea rose too, surging by 122.4% and 93.9% on month respectively, to reach about 71,282 tonnes and 11,040 tonnes.
During January-September, China has exported about 6.75 million tonnes of coke, rising by 6% from the same period last year, the GACC data indicate.
Market participants anticipate that China's coke exports could remain under pressure in October, as overseas demand shows little sign of improvement. Orders from global buyers in October are forecast to keep light. Average coke exports in the fourth quarter will hover between 500,000 and 700,000 tonnes per month.
As of September 30, the export price of metallurgical coke (ash<12.5%, VM<1.5%, sulfur<0.65%, CSR>65%) under Mysteel's assessment rose by $2/tonne on month to $267/t FOB from East China's Qingdao port.
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.
