Chinese coke export prices driving up global levels
It is reported that the global coke price has advanced substantially fueled by increasing demand across the world, China's reduced export quota, the ocean freight rate hikes and swelling coking coal cost.
As a major coke exporter, China covered a half of world trade volume last year.
Chinese government, d to curb resource intensive products export, raised export duty to 15% from June 2007 and reduced the yearly export quota to 13.292 million tonnes. Chinese coke enterprises have already shipped 11.73 million tonnes till September 2007 nearly depleting the whole year's export quota.
On the contrary, the world demand rose and drove up China's export price accordingly. In October 12.5% ash content coke exceeded USD 300 per tonnes and the highest quotations have reached USD 350 per tonnes now compared with USD 280 per tonnes a month before.
Aside from China, the coke price also moved up in other countries, Poland's price for 10.5% ash content coke is reported at USD 200 per tonnes, Russian and Ukrainian between USD 320 per tonnes to USD 330 per tonnes and Egyptian and Turkish between USD 310 per tonnes to USD 325 per tonnes.
China is rumored to raise coke export duty again in short term, likely pushing up export price and global price further.
Source: MySteel.net
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