More metallurgical coke producers in China proposed to raise coke prices by 100-110 yuan/t at the start of the week following some peers' same proposals last week, as they are struggling with losses at a time when both the upstream and downstream are pressing over the industry.

 

After several coking plants in Inner Mongolia launched first round of price increase during the previous week, main coke companies in Hebei, Shandong, Shanxi, Jiangsu and Inner Mongolia have joined the rank to lift prices.

 

"The losses are too harsh to bear anymore, and no way will us to sustain any longer if coke prices don't increase. Even after the first hike, we still don't have much profit left," said one source with a large Shanxi-based coke firm.

 

Coke demand continues improving and steel mills are itching for more coke dispatches, but coke producers barely have many cargoes in hands amid smooth sales, several sources noted.

 

Sxcoal's tracking data showed losses of surveyed coking plants for dry-quenching coke further increased to over 100 yuan/t on November 14, since coking coal miners kept adjusting up coal offers.

 

On November 14, Fenwei CCI Index for Shanxi low-sulfur primary coking coal stood at 2,380 yuan/t, ex-washplant with VAT, climbing 40 yuan/t from the day prior; the index for Shanxi high-sulfur coking coal stood at 2,130 yuan/t, up 41 yuan/t.

 

The growing bullish outlook for coke prices further cheered up coking coal miners, and some revised up spot prices by 50-100 yuan/t, with accumulative increases at 150 yuan/t or so and current levels of some grades even surpassing previous highs before price drops in October.

 

On November 14, a group of coking coal miners in Lishi, Luliang of Shanxi, raised up prices of low-sulfur fat coal by 100 yuan/t, with cargo (S 1%, A 11%, GRI 95) prices up to 2,250 yuan/t, ex-washplant with VAT and in cash.

 

An online auction for low-sulfur primary coking coal (S 0.9%, A 12%, GRI 95) in Jinzhong, Shanxi started at 2,150 yuan/t for 10,000 tonnes, and concluded at 2,233-2,262 yuan/t for all, comparing to 2,145-2,159 yuan/t in last trade on November 9.

 

The upsides in coking coal prices at production areas also buoyed prices for imported Mongolian cargoes.

 

A large coke company in Inner Mongolia invited tender for Mongolia 5# raw coal (S 0.7%, V 28.5%, GRI 80) at the ceiling price of 1,700 yuan/t on November 14, and ultimately concluded at 1,660 yuan/t for all the 10,000 tonnes, rising 66 yuan/t from November 7, DDP with VAT.

 

Steel product prices realized robust rebounds since this month, backed by a flurry of economic stimulus policies, and are expected to continue the upward trajectory given the outlook that Federal Reserves may ease interest rates.

 

Data showed, the Tangshan Q235 billet price increased 80 yuan/t week on week and rebounded by 220 yuan/t month on month at 3,630 yuan/t on November 13. Shanghai rebar rose 30 yuan/t day on day and jumped 310 yuan/t from a month ago to 4,030 yuan/t.

 

With recouped steel-making profits, some steel mills have resumed operations of blast furnaces, activating certain demand for coke restocking and stoking up some coking plants' intentions to hold out sales for higher prices.

 

The constant increases in coking coal and coke futures also fueled buoyant sentiment among participants. Since October 24, the most-traded coking coal futures at Dalian Commodity Exchange have surged over 20%, while coke futures also jumped by 15%.