It is reported that China coke market has remained even weaker than before. Hebei Iron and Steel Group issued its coke price for October setting the price of quasi first grade coke in line with September and at CNY 1,730 per tonne. In October, steel mills have all tended to push down the purchase price of coke. On the side of coal market, coking coal price has run higher as it ever did. In Shanxi, coke plants are suffering from loss. The grim situation is caused by the weakening steel market which reduces demand for coke, and the high export tariff of coke which prevents coke plants from exporting coal by large quantities.
1. China steel market is still in a gloomy state. Analysts say although steel market rebounded slightly in recent period, generally speaking the overall market is still flat. It is predicted that its demand for coke will remain weak for quite a long time in the future. Now the steel market is in a fluctuating state.
2. The 40% export tariff has detained at home large amount of coal, which would be exported if it were not the high tariff. This amount of coal brings large burden to domestic market. China export volume of coke in August remained at 42,700 tonnes dropping 22.19%MoM, the export value stayed at USD 15.19 million down by 19.41%MoM. In January to August China produced a total of 220 million tonnes of coal, down by 1.3%YoY. The total export volume remained at 326,300 tonne down by 96.5%YoY and less than a week volume of last year. Coke exports have posted on negative growth for 12 consecutive months.
On October 21st in Ping Dingshan, Henan province, the ex factory price of second grade coke remained at CNY 1,550 per tonne, in Taiyaun it stayed at CNY 1,580 per tonne, in Zibo, Shandong province at CNY 1,600 per tonne and Liupanshui CNY 1,520 per tonne. These areas all witnessed CNY 20 per tonne to CNY 50 per tonne drop in coke price. The only price rise is seen in Weifang, Shandong province, where second grade coke price went up by CNY 50 per tonne to CNY 1,630 per tonne. Coke price remained stable in other areas.
(Sourced from MySteel.net)
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