Coke prices in Shandong largely hold stable recently except that in Rizhao, steel plants have accepted a slight increase.

Now second grade metallurgical coke in Shandong and Shanxi are screwed up by CNY 10 and CNY 30 respectively for one tonne to CNY 1,990 and CNY 2,020 including delivery and VAT. In Shandong Linyi, second grade and first grade metcokes are quoted at CNY 1,950 per tonne to CNY 1,980 per tonne and CNY 2,150 per tonne respectively.

Owing to coal mine rectifications and production cuts earlier as well as cokeries’ winter reserve plans underway, some coking coal varieties have edged up. Demand runs brisk for high quality prime coking coal, fat coal and 1/3 coking coal.

The weakly consolidating steel market and the high hovering iron ore prices have further weighed on steel plants profit margin. Therefore, since overall coke quotations stepped up last week, steel mills have been sitting on their hands and become more unwilling to buy the rise. This morning, Rizhao Iron and Steel adjusted higher its purchasing price of coke, indicating steel companies’ attitude switched from wait-and-see to acceptance. It seems to have brought liveliness to the coke market that has seen sluggish trades for a week.

Since the price hike, coke transactions have turned weak in Shandong, pushing up inventory in some coking plants. Small cokeries did not lift prices, but their coke stocks remain high. As steel mills raise their receiving prices, this situation will be soothed later and coke enterprises may feel more optimistic on the outlook.

(Sourced from MySteel.net)
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