Spot coking coal prices in China fell by $4/t to $175/t EXW from April 25 to May 9, according to Kallanish. Local mines are currently experiencing surplus production. This is forcing them to reduce their selling prices. Meanwhile, demand from coke plants remains stable.

Oversupply in the Chinese market has reduced imports. Consignments of coking coal from Mongolia have been stuck at the border for a long time due to a lack of orders. Purchases from Australia were also not recorded in the period under review.

The situation may change after the mines’ stocks decline. Futures contracts for delivery in June on the Singapore Exchange were offered at $186/t in the first decade of May. This indicates that prices are expected to rise.

Domestic demand for coke in China remains strong thanks to the steel industry. In this regard, coke exports from China fell by 26.5% – to 1.77 million tons in January-March. Including in March – by 15.6%, to 760 thousand tons.

In the face of overproduction, Chinese mines are trying to sell their surplus on foreign markets. In January-March, exports of coking coal from China increased by 1.8% to 1.41 million tons, including 23.6% to 460 thousand tons in March.