Coke Market Ushered in First Round of Price Hike After Market Sentiment Improved

SHANGHAI, Apr 6 (SMM) - With the easing of the pandemic situation, the shipments of coking plants have picked up and the market sentiment also improved. Some coking plants held back their cargoes, while others in Shanxi, Shandong, Hebei  and other regions decided to hike their prices by 200 yuan/mt from the midnight on April 7. After the adjustment, prices of first-grade metallurgical coke will be 3,700 yuan/mt, and those of quasi first-grade metallurgical coke will be 3,530 yuan/mt, all of which are ex-factory prices and include tax.

On the demand side, lockdown has been lifted in some areas of Hebei after the local pandemic situation has eased. Some steel mills who hot idled their blast furnaces earlier due to difficulty in obtaining coke have resumed production and others plan to raise their production.   

On the raw material side, the increase in downstream demand has driven the market sentiment of coking coal to improve. In addition, the supply of coking coal has tightened, supporting the rise in coking coal prices.

Given strong expectations of steel mills resuming production, low coke inventory and the peak season, coke prices are expected to climb further.