Posted on 07 Jan 2021
Leading steelmakers in North and East China conceded another Yuan 100/t ($15.5/t) rise in coke procurement prices from the beginning of 2021 to ensure steady supplies to their works. With the latest adjustment, the coke makers have now squeezed buying-price rises from their steelmaking customers on 12 successive occasions since mid-August last year for a total Yuan 700/t increase.
As of January 5, Mysteel’s national composite coke price had firmed by Yuan 29/t on week to Yuan 2,355.1/t including the 13% VAT, refreshing its 25-month high.
The concentrated removal of inefficient coking capacity nationwide has exacerbated the tightness in domestic coke availability, even though many coke plants are working at full capacity to enjoy the high margins on offer. Total coke stocks at the 110 Chinese steel mills under Mysteel’s weekly survey declined for the fourth week as of December 31, dipping by 0.6% on week to 4.39 million tonnes, a new low since February 14, 2019. These stocks could sustain the mills for 13.4 days of operation, a 27-month low.
Source:Mysteel Global
