CHINA COKING COAL WRAP: Prices rebound but uncertainties abound

Domestic coking coal prices in China bottomed out in June amid strengthening coke prices and talk of production cuts.

Metal Bulletin’s assessment of prices for Chinese domestic hard coking coal on the Shanxi spot market, delivered to Tangshan, stood at 1,250-1,470 yuan ($184-217) per tonne on Friday June 23, up 20 yuan ($2.90) per tonne from a week earlier.
They compare against 1,250-1,550 yuan ($183-227) on May 26.
In contrast with buyers’ consensus in May that domestic coking coal prices would be driven down further in June, those for S1.3 Shanxi coking coal were stable this month. Prices for the mainstream premium brand of Liulin No4 also stabilised after dropping in the first two weeks of June.
Market participants, however, emphasised that the recent increase did not reflect a significant improvement in demand.
Prices went up due to slight increases in transportation costs, according to end-user sources in Tangshan.

The increase in domestic coking...

Published

Sophie Zhao

June 30, 2017

08:23 GMT

SIngapore