The price of Chinese coking coal fell 8.8 percent on April 12, 2013, making it the day’s biggest mover on the steel and raw materials price index.
In coking coal news, SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq: SCOK), a Florida-based producer, announced recently that the company “expects to increase its coke production capacity by 80%, to a total of 450,000 metric tons annually,” by signing a lease agreement with China’s Hongfeng Coal.
SinoCoking Chairman and CEO Jianhua Lv said, “Over the last several months, we have seen a slight but steady improvement of demand for coke, mainly from steel mills, due to the recent steps taken by the Chinese government to vigorously promote construction in rural areas. As a result, we have resumed the construction of our 900,000 metric ton coking facility, which we now plan to complete before fiscal 2014 year-end.”
Current Global Steel Prices
On the LME, the 3-month price of steel billet declined 2.7 percent to $180.00 per metric ton. Also on the LME, the cash price of steel billet held steady around $160.00 per metric ton.
The US HRC futures contract spot price fell 1.2 percent last Friday to $601.00 per short ton. The US HRC futures contract 3-month price flattened at $613.00 per short ton after two days of downward movement.