Coke prices in China began to show signs of increase in late April, which is an important signal for the country’s steel industry. According to the analytical company Kallanish, the quotations for Chinese coke at the Zhiqiao port rose by $1.4 per ton from April 11 to April 18, reaching $184 per ton FOT. This is $1.4 lower than the level at the beginning of the month, indicating market stabilization after a previous decline.
This is reported by Бізнес • Медіа
Factors Affecting the Price Situation
Significant influence on price dynamics comes from global markets and domestic factors. In the first half of April, Australian exporters raised prices for premium coking coal by $14, to $181 per FOB. This occurred against a backdrop of limited supply and rising demand, putting pressure on coke prices in China. However, at the same time, prices for finished steel in the country are showing a decline, affecting the profitability of coke production. Metallurgical enterprises in China are refraining from purchases at high prices due to decreasing profitability.
Amid this, Chinese mines maintain high price demands for coke chemical plants, as their own stocks remain low. In March, coke production in the country decreased by 4.1% year-on-year, while prices gradually stabilized closer to mid-April. According to data, prices for Indian coke in the first half of April remained stable within $404–410 per ton EXW. Following the introduction of duty-free import quotas by the Indian government, the price of the product increased by $46–52 per ton in the first quarter.
International Coke Imports and Their Impact
By mid-April, offers from China and Indonesia remained at around $350 per ton CFR, which restrained further increases in domestic prices in the country. At the same time, high demands from local producers stimulate importers, despite additional tariffs. In particular, in March, coke imports to India increased by 138% compared to the previous month, reaching 232,000 tons, mainly imported from Poland.
In April, the country’s government allowed one of the largest steel companies, JSW Steel, to import 106,000 tons of coke from Indonesia duty-free, exceeding the established limit of 66,300 tons for the first half of the year. This case may set a precedent for other companies that will also approach the authorities with similar requests. Previously, ArcelorMittal Nippon Steel India expressed concerns about the potential consequences of coke import restrictions on steel production and enterprise development plans. According to AMNS India CEO Dilip Oommen, this restrictive mechanism could lead to a complete shutdown of blast furnaces as early as June or a reduction in their operation starting in April.