It is reported that coke market has started to warm up along with demand increase as domestic steel mills gradually resume their productions. In Shanxi, Hebei and Shandong provinces, the coke price has increased continuously. The three provinces take over 50% of national total coke output.

 

Reporters learned that Shanxi Coking Industry Association has released its guiding quality and price for coke in Jan. The association set the coke quality standards with sulfur content below 0.7 and ash content below 12.5, while fixed the coke price at CNY 1750 per tonne, FOV up nearly 10% from CNY 1600 per tonne posted in December 2008. And even before the action taken by Shanxi province, Hebei has set the coke price at CNY 1750 per tonne earlier.

 

At the meanwhile, many domestic steel mills also increased their coke purchase prices due to the market supply shortage. Analysts noted though some steel mills have yet raised their coke purchase prices, they would actually hammer out price policy every month and subsidize their suppliers according to market price changes.

 

Though many positive signs have started to emerge amid coke industry, there are still many uncertainties for coking enterprises. Shanxi coking enterprises will continue the restrictions on productions, sales and transportations until the end of this Jun. As a major coke producer, Shanxi's production restriction will help to stabilize the market price as well as balance the supply-and-demand situation, said the analysts.

 

According to the reporters, the coking enterprises' stockpiles have dropped evidently and some suppliers even reluctant to sell their products. There are also some enterprises are unable to increase the coke productions due to the liquidity problems. Generally, the market demand is hot amid the tight supply and the coke market is anticipated to continue the upward trend in the short term.

 

(Sourced from www.Mysteel.net)

 

 

 

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