Review of China coke market in early-Nov

China’s domestic coke market kept stable in the beginning of December. With small and medium-sized steel mills resuming production in some areas, coke transaction has increased and the falling price also ground to a halt. Some coke enterprises have sold out the stockpiles, and some raised their prices a little, even not too much, bringing hopes for a rebound after a nose dive in past months.

Northeast China market turns better with the upturn in price over the first week of December. As some steel mills resumed production, most of the coke enterprises sold out their stockpile. However, coke producers are still cutting production to avoid losses in case the market sinks again. Some enterprises are mulling a rise in the price under the current stable market. Grade Ⅱ coke was mainly quoted at 1300-1400 yuan/t, same with in late November, some deals are settled at 1200 yuan/t or so.

North China market stabilized finally with some slight rise in prices, but most of the coke producers remained cutting or suspending production.

With rising demand from steel mills, some producers raised the ex-factory price by 50-100 yuan/t, and the Grade Ⅱ coke was offered at 1300 yuan/t. The price for Shanxi coke delivered to steel mills in Hebei province is 1500-1600 yuan/t. Small-size coking plants now have low stockpile as a result of low price sales, while large coking plants hold stocks of about one-month’s output.

Coking coal market in Hebei seems to much better in Shanxi, where a tight market emerged again with the resumption of many steel mills. Coke prices rose by 50-100 yuan/t on low stocks. However, with the upgoing market, coke enterprises in Heibei still are not planning to resume production. The price for Grade Ⅱ coke delivered to steel mills in Handan and Tangshan is quoted at 1400 yuan/t and 1500 yuan/t, respectively.

East China Coke price was stable recently. In Shandong, the coke market showed upturn with the active enquires from steel mills, but prices remained at the level of weeks ago. The ex-factory price for Grade Ⅱ coke was quoted 1300-1450 yuan/t, and Grade Ⅰ coke around 1600 yuan/t. Analysts expected coke price to be adjusted up on the ebbing stockpile in both coking plants and steel mills.



The ex-factory price of Grade Ⅱcoke in Shanghai was up 150 yuan/t to 1350 yuan/t from 1200 yuan/t in Nov. Analysts predicted no big changes in prices in the following weeks.



Central and South China saw a rise in coke price with increased transaction. The ex-factory price was between 1400-1600 yuan/t, up 50-100 yuan from previous weeks. With steel mills back to production, most coke producers have sold out their stocks that were piled up months ago. The ex-factory price of leading coking plants in Pingdingshan stood at 1350-1400 yuan/t, higher than some small plants, which may slide to 1200 yuan/t.



West China The bear-market rally is under way. The prices of grade Ⅱcoke was roughly reached 1200-1300 yuan/t, same with last week.