- 374 积分
Output: Overall operating rate at surveyed 60 coking plants increased by 1.73 percentage points from a week ago, as production utilization improved in Shanxi after pollution alerts eased or removed in Taiyuan, Luliang and Jinzhong.
Profit: Coke profit climbed 7.9% week-on-week due to implementation of the third round of met coke price hike.
Stocks at coking plants: Coke inventories at surveyed coking plants dropped for seven consecutive weeks, though week-on-week decline cushioned from 9.6% to 3.67% during the surveyed period.
Steel mills contacted by Fenwei saw a faster week-on-week increase of coke inventories of 2.49% compared with 0.5% a week ago, mainly thanks to improved restocking efficiency amid loosened restriction on trucks based on emission levels.
A leading met coke producer based in Hebei in northern China proposed to raise coke prices by 50 yuan/t.
New price of Quasi Grade I dry-quenching coke is 2,140 yuan/t, Quasi Grade I wet-quenching coke at 1,890 yuan/t, Grade II coke at 1,860 yuan/t, ex-plant with VAT and on banker's draft. All the offers are reportedly effective from January 8.
A few coke producers in Xuzhou in eastern China's Jiangsu province also proposed to adjust up coke prices by the same amount to 2,000 yuan/t for Quasi Grade I wet-quenching coke and 2,250 yuan/t for dry-quenching coke, ex-plant with VAT, local sources said.
Heavy snow hit Shanxi, Hebei and other northern Chinese provinces on January 5 and interrupted coke transportation via road.
Several expressways in Shanxi, the top coke production base in China, are forced to be closed due to thick snow covers.
Source with coking plants in Taiyuan and Luliang of Shanxi that rely heavy on truck for coke deliveries reported suspension of coke dispatches since January 5, leading to accumulation of coke stocks.
Met coke stocks continued declining at eastern ports in China due to persistent tepid coke inflows and continuous outward shipments to end users.
Combined coke stocks at Rizhao and Dongjiakou ports in eastern China's Shandong province dropped by 20,000 tonnes from late last week to 3.27 million tonnes on January 6.
The level was roughly 0.5 million tonnes lower compared with the early-December level, data showed.
Mainstream offers of Quasi Grade I met coke at Rizhao port are hovering at 1,870-1,900 yuan/t, and Grade I coke at 1,950-2,000 yuan/t and Grade II coke at 1,750-1,800 yuan/t, ex-stock with VAT and in cash.
Met coke stocks at steel mills in northern China increased to 10-15 days' worth of usage, after a remove of transportation restriction on trucks with higher emission levels.
Coke inventories at previously low-stocked mills also climbed to rational levels amid improved transportation in both highway and railway.
Sources saw loosened restriction on booking rail wagons due to refreshed 2020 shipping targets.
Besides, coke supply was improved amid higher operating rate in production areas.
Fenwei assessed cost of Shanxi Quasi Grade I met coke at around 1,905 yuan/t, FOB Rizhao port, on December 31, indicating no price advantage compared with spot prices of 1,850-1,900 yuan/t, ex-stock with VAT and in cash.
Traders continued holding tepid replenish interests due to weak profits.
Coke stocks kept falling at Rizhao and Dongjiakou ports, down by 10,000 tonnes from a session ago to 3.28 million tonnes on December 31.
Some Shandong-based steelmakers on December 25 accepted the recent 50 yuan/t price hike proposals from coke producers.
Quasi Grade I dry-quenching coke with 60% CSR and 0.5% moisture at 2,123 yuan/t.
Quasi Grade I wet-quenching coke with 60% CSR and 7% moisture at 1,930 yuan/t.
Grade II wet-quenching coke with 55% CSR and 7% moisture at 1,880 yuan/t.
The prices have been effective on December 26 and are all on delivered basis with VAT and on banker's draft.
Some Handan-based steelmakers in Hebei accepted to raise met coke buy prices by 50 yuan/t on December 25, after their coke inventories dropped to low levels.
This was primarily due to reduced coke supplies, as roughly 30-50% of production was curbed at some coking plants in Shanxi due to intensified pollution checks.
Supply was also delayed due to temporary closure of highway amid heavy fog weather and also limited trucks compliance with emission standards allowed by authorities during pollution alerts.
Met coke stocks at eastern ports in China's Shandong province kept sliding, as inflows of the steel-making material from production areas reduced, due to lack of profitability.
Fenwei assessed cost of Shanxi Quasi Grade I met coke at around 1,900 yuan/t, FOB Rizhao port, on December 24, suggesting no price advantage compared with spot prices of 1,850-1,900 yuan/t, ex-stock with VAT and in cash.
Traders continued selling stocks at ports while holding tepid replenish interests from production areas.
Combined coke stocks at Rizhao and Dongjiakou, two major ports in Shandong dropped by 10,000 tonnes from a day ago to 3.4 million tonnes as of December 25, data showed.
Coke delivery to steel mills in northern China was interrupted these days, following pollution alert issued in major production areas of Shanxi and Hebei.
Trucks with emission levels below national standard IV or even V were banded in some production cities with poor ranking of air quality, leading to limited trucking capacity.
Rail delivery was slightly tightened due to rising transportation demand for bulk commodities approaching the end of the year.
Sources with steel mills in northern China reported slower-than-expected build of coke inventories even they have been active in restocking.
Around 1.85 million tonnes of coking capacity in Binzhou of eastern China's Shandong province is about to be retired by the end of the month, local government said in an announcement recently.
Shandong has retired about 8.25 million tonnes of coking capacity so far, according to Fenwei's statistics, much closer to its target of 10.31 million tonnes of elimination target in 2019.
This represented a dramatic boost in capacity cut during the last two months, as less than 2 million tonnes of capacity was reported to have closed as of October.
Output: Overall operating rate at surveyed 60 coking plants increased by 0.94 percentage points from a week ago. Production in Shanxi and Hebei improved after pollution alerts lifted.
Profit: Coke profit climbed by 12.9% week-on-week as settlement prices from coking plants in Shandong and Jiangsu slightly increased, even though mainstream mills have yet to accept the third round coke price hikes.
Stocks at coking plants: Coke inventories at surveyed coking plants decreased for five consecutive weeks, and down by 10.1% from a week ago, as coke producers were active in delivering coke amid improved margins.
Coke stocks at steel mills contacted by Fenwei decreased marginally by 0.4% week on week during Dec 13-Dec 19 due to interruption of transportation amid snow weather and tighter transporting capacity of railway.
A group of met coke producers in Rizhao, Zibo, Weifang, Binzhou, Dezhou, Liaocheng, Jining, and other major cities in eastern China's Shandong province proposed on December 20 to raise prices by 50 yuan/t for the third round.
New prices would be effective on December 21. The increase added up to accumulative 150 yuan/t uptick since late-November.
The spreading price hike proposals came as coke supply dropped markedly amid continuous de-capacity move.
Shandong, the 2nd largest coke producing province, is still far behind the schedule in excess coking capacity elimination.
It targeted to strip away 10.31 million tonnes per annum (Mtpa) of backward coke capacity in 2019, yet only 5.3 Mtpa has been reduced by far, half way through the goal.
More coke ovens with chamber height lower than 4.3 meters would be closed by the end of the month, according to local sources.
Spot price of Shanghai HRB 400 rebar with 20 mm diameter stood at 3,860 yuan/t, ex-factory with VAT, on December 18, down 210 yuan/t for the month to date and tumbling by 320 yuan/t from a peak of 4,180 yuan/t on November 25.
Billet price also dropped significantly. Tangshan Q235 billet fell by 110 yuan/t from early-Dec level to 3,340 yuan/t, ex-factory with VAT, on December 18, a total 130 yuan/t decline from a short-lived high of 3,470 yuan/t.
The declining steel prices added uncertainty to the third-round 50 yuan/t met coke price hikes proposed by some producers mid-week. Steel mills appeared to be more resistance to the hikes.
Average steel margins in Tangshan would drop to roughly 350-400 yuan/t, while coke profits were estimated at 200-250 yuan/t if the 50 yuan/t increase is implemented.
Several met coke producers from Jinzhong in China's top coke base of Shanxi province plan to suspend receiving advance payments from downstream buyers from December 18.
The tentative halt came after a tighter supply of feedstock coking coal amid safety checks at mining areas of Shanxi, and plenty existing orders to be fulfilled.
A major met coke producer based in northern China's Hebei province proposed to raise coke offers by 50 yuan/t, the third round of hike since November.
Price of Quasi Grade I coke is pegged at 2,030-2,080 yuan/t, and Grade II coke at 1,810 yuan/t, ex-plant with VAT and on banker's draft.
New prices would be effective on December 18.
Output: Overall operating rate at surveyed 60 coking plants edged down by 0.01 percentage points from a week ago. Production in Tangshan in Hebei and Anyang in Henan slightly reduced due to pollution alerts while that in Shanxi increased after pollution alerts lifted at some cities.
Profit: Coke profit increased by 74.6% week-on-week after steel mills accepted the second round of 50 yuan/t price hike proposed by producers.
Stocks at coking plants: Coke inventories at surveyed coking plants decreased by 9.7% week on week, as coke producers expedited delivery after margins improved.
Coke stocks at steel mills contacted by Fenwei increased marginally by 0.6% week on week during Dec 6-Dec 12 due to stronger replenish demand from mills after inventories dropped from lengthened transportation cycle.
Rizhao Steel Holding Group Co., Ltd., a leading steelmaker based in eastern China's Shandong province adjusted up its coke prices by 50 yuan/t.
Its purchase prices for Quasi Grade I wet-quenching coke with 0.75% sulfur and 13% ash were pegged at 1,840 yuan/t for suppliers in the province and 1,850 yuan/t for sellers from other provinces.
It also upped price of Quasi Grade I dry-quenching coke with 0.7% sulfur and 13% ash by the same amount to 1,880 yuan/t. All prices are on delivered basis, inclusive of VAT and on banker's draft.
New prices have been effective from December 12.
Fenwei assessed cost of Shanxi Quasi Grade I met coke at around 1,845 yuan/t, FOB Rizhao port in Shandong province on December 9.
The assessment indicated not much price advantage compared with spot prices of 1,830-1,850 yuan/t, ex-stock with VAT and in cash, at Rizhao port.
Some traders cut purchases from production areas after producers raised offers by another 50 yuan/t and were active in selling stocks at the port.
Output: Overall operating rate at surveyed 60 coking plants decreased by 0.5 percentage point from a week ago, amid intensified production curbs in Shanxi and de-capacity campaign in Shandong.
Coke production was subdued by 40-50% in Fenyang of Shanxi,and roughly 10-30% in Lifen, Changzhi, Jincheng and Taiyuan of the province amid intermittent environmental checks. Producton at two coking plants in Shandong with capacity of 1.1 million tonnes per annum was suspended as per requests from local authorities as part of the provincial efforts in eliminating backard capacities.
Profit: Coke profit rose slightly by 2.9% week on week, with some margins gained after the first round of 50 yuan/t price hike offset by firmer coking coal prices.
Stocks at coking plants: Coke inventories at surveyed coking plants decreased significantly by around 15.5% week on week amid stronger demand from steel mills and weaker production at coking plants.
Coke stocks at steel mills contacted by Fenwei increased marginally by 1% week on week during Nov 29-Dec 5, mainly driven up by rising restocking demand from southern steel mills, fearing of potential tight supply from maintenance of the Grand Canal.