Although the current momentum of the recovery of iron and steel industry so that had been two by the squeeze of the coke industry, the tone a little slow, but the industry is cautiously optimistic about the steel prices also made the market outlook for coke enterprises lightly. An interview with the China Securities newspaper is planning to IPO in high energy Co., Ltd. Deputy General Manager of Shanxi Xing Hou Kang, in his view, by the iron and steel markets, coking industry September is a Kan Er.

Reporter: Recently, a marked recovery of coke market, how a companys current production situation like?

However, after mid-May the situation was reversed, the company coke production capacity fully restored, and month by month improvement in production in July hit its highest level since the company was founded. The second quarter, the company reversed a quarter of losses, the general also realized a profit in the first half, but net profit fell a lot. However, since the third quarter of the market situation is very good.

Reporter: Since May, coke prices have been raised several times, said a lot of coking enterprises are planning to launch in August to continue to raise prices, Hing high energy product sales how like? August intend to do price adjustment?
Hou Kang: We are the companys coke prices have also been raised as the market conditions, product prices have now reached the highest since last October, one of which a metallurgical coke price 1,800 yuan / ton, compared with last year, in December of 1200 yuan / ton have come back 600 yuan.

Steel mills are now in full production, the demand for coke relatively large, despite the recent coking coal prices have also raised a number, but the price of coking enterprises want to be able to rise about 1 oclock. Steel plant in July has also raised prices several times, from the beginning to the present, steel prices have risen about 1,000 yuan, while the coke price increases in the 500-600 yuan, should be said that there is room for price increases in August, now and in the steel mills the negotiations easier.

However, we judge that will be coking market in September, a Kaner, because, according to the present production, by the end of August early September may be steel stocks rise in late September may appear limited production steel case, coking enterprises the production will follow affected. However, if the smooth through September, then the year of coking industry should be no problem.

Now, I think the pre-warming the steel industry is primarily a national 4 trillion investment-led, while the demand could not keep up with the follow-up will depend on the construction industry operating rates of the. Although house prices rising again, there have been around a lot of prime sites, but the key to see if such prime sites have started construction, if not started on the steel and coking industry, boosting not be achieved. 

Reporter: coking coal resources have been relatively tight, coke prices are up, while coking coal prices, coking enterprises which will create great pressure on the profit?

Houkang: Shanxi Province from April 10 after more than an annual output of 150,000 tons of coal mines are launched one after another, the market supply situation eased. This year, Hebei and Shandong enterprises to actively import of coking coke, thereby reducing the demand for coking coal in Shanxi Province. At the same time, companies also went to Ningxia, Shanxi, Inner Mongolia, Qinghai and other places to buy coal, to suppress the primary coking coal prices in Shanxi Province. Although the outside of coking coal in Shanxi certain indicators do not compare the local coking coal, only two out of coke smelting, but through the purchase of imported coking coal can play a role in reducing costs.

Are said to have some of the coking enterprises in Shanxi Province also plans to organize themselves to buy imported coking coal to the port. Shanxi coke in part to be delivered to steel mills in Hebei, they intend to take advantage of these shipped out coke in Tianjin, Hong Kong and other ports wagon pulling the main coking coal, coking coal that can also reduce transportation costs, but also can improve the security of supply of coking coal.