OREANDA-NEWS. China's largest metallurgical coke producer Risun raised its 64 CSR export offers to $170/t fob north China today, or a floating basis to the Argus 65 CSR index.

The addition of the floating basis option follows a nearly $50/t jump in prices since early March and some defaults on fixed-priced cargoes, including shipments to Turkey and southeast Asia.

Argus-assessed prices have risen to $156.67/t for 62 CSR and $159.86/t for 65 CSR cargoes as of last week, from $109.25/t and $110.88/t the first week of March respectively.

Hebei-based, 10mn t/yr producer Risun is offering Argus 65 CSR index for June-loading 64 CSR, 30-100mm sized quality met coke at Tianjin port.

Risun's offer levels could signal that Argus indexes will finish this week around 50pc higher than in early March. Argus assesses the thinly traded met coke market weekly every Thursday.

Risun, which operates two coke plants in Hebei province, also plans to raise domestic met coke prices by 50 yuan/t tomorrow on support from tight supply and strong demand from mills.

Shanxi-based 5mn t/yr coke producer Sinoshine has also offered on the Argus met coke 65 CSR index or a $170/t fixed price for June loading 65 CSR, 30-100mm met coke cargoes loading at Lianyungang port.

Risun and Sinoshine are two of the biggest coke exporters in China, with much of the rest of the market handled by trading firms.

The uptick in demand comes as the Hebei government plans to cut met coke capacity by 6mn t/yr in 2016, with a target to cap capacity below 100mn t/yr by the end of 2018. No new met coke projects will be approved, the Hebei development and reform commission said earlier this month.

Front-month May met coke futures with 62 CSR closed at Yn1,046.5/t today, equivalent to around $172/t fob for export. The same contract was trading around Yn700/t in the first week of March, or around $118/t fob for export.