Market commentary--Green coke exhibiting large price spreads

摘要

The start of the year has seen green coke prices decreasing in the West but rising within China, adding to the confusion about when and at what level prices will converge. Much of the problem is structural and based around the different sales markets. In China, an almost entirely spot system saw prices move downwards very quickly before rebounding in the last four to six weeks. The system of contracts and renegotiations in the West contrastingly led to a slower decline and recent stabilisation. The existence of integrated producers and much larger merchant calciners than those found in China has also added to the dynamic, resulting in current spot prices for US green coke being below both Chinese prices and those agreed with the calciners at the end of 2008.