Chinese Coke’s Export Price Ups to FOB US$ 150

Chinese coke’s export price rose to above FOB US$150 per tonne from US$140 at the end of April. The price increased under strong domestic demand and demand from India and offshore buyers. Chinese coke makers were forced to reduce the output at the loss making price level improving the supply balance. However, the price has no chance to increase widely when the supply structure is still overcapacity. The coke export price turned into upward trend in April after the stable move at around FOB US$ 135 per tonne in March. The supply balance improved including overstock when Chinese coke makers reduced the output due to the loss making operations with expensive coking coal. Another cost up factors apparently lifted the price when surging oil price increased rail freight and other costs. Chinese raw steel output hit monthly record in March under price recovery since the beginning of the year after the slump under the lower steel price. The industry apparently entered into another growing cycle. Chinese coke supply balance improved with firm demand from offshore buyers including India, which increased the raw steel output by 17% in March from a year earlier, along with firm Chinese demand.