China steel mills turn prudent in coke purchase

2017-12-26 10:42:00 Company,  Price,  Production & Sales,  Cost & Profit,  Resource sxcoal.com
Some Chinese steel mills started to be prudent in buying coke at high prices after recent bouts of spike, weighing on coke market.

Major coke plants had no stocks amid former orders and coke prices at producing areas have increased accumulatively 600-800 yuan/t since end-November.

One large Hebei-based steel producer raised purchase price by 150 yuan/t to 2,470-2,510 yuan/t for Grade I met coke.

One Tangshan-based steel mill rejected further rise of coke prices due to limited storage capacity and abundant supply, and accept only the former prices -- Grade II coke at 2,260 yuan/t and Grade I coke at 2,320 yuan/t, DDP with VAT.

Some traders and coke plants were actively selling coke for fear that rallying prices hampered downstream users' buying interest.

New orders on coke started to decrease and it became hard for deals to be concluded at high price level in some regions.

One Luliang-based coke producer said they had been ordered to cut production by 50% to battle pollution and they had no coke stock left. He said offer price for Grade I coke stood at 2,200 yuan/t, ex-washplant basis with VAT.

A Rizhao-based trader offered Quasi Grade I coke with 0.7% sulfur, 13% ash and CSR 60 at 2,300 yuan/t, FOB with VAT.

"We maintain 5,000 tonnes of spot coke stocks," he said.

One Jiangsu-based coke producer said the operating rate of their company stayed at 50% amid strict environmental inspections and offer price for Quasi Grade I coke stood at 2,450 yuan/t, ex-washplant basis with VAT.

On December 22, Fenwei assessed the price of Luliang Quasi Grade I met coke (0.7% sulfur, 13% ash and CSR 60) at 2,150 yuan/t, flat from a week ago; that of Jinzhong Grade II met coke (0.8% sulfur, 13.5% ash and CSR 55) at 2,050 yuan/t, unchanged on the week as well.  

(Writing by William Gao   Editing by Jessie Jia)
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