July 29 Xinhua recently in the national economic stimulus package driven, as well as by domestic steel prices bottomed out, steel prices to expand the impact of the procurement of coke, coke trade volume and price Chai Sing province, the market warming.
Coke spot price hikes
Recently, the province of coke sales price on the rise, reaching a high of gratifying. It is understood that province coke spot price hikes, to the last weekend, although the coke price rises slow down, but still too high. Price for the two metallurgical coke province 1,720 yuan ~ 1750 yuan / ton, while the Foundry Coke also has seen prices rise offer of 2,300 yuan to 2,400 yuan / ton.
Coke market in the face of warming, Shanxi Coking Industry Association, a rare twice in July Quotes guidance on coke. July 1, Shanxi Coking Industry Association in the on the July 2009 guidance on coke market, said not changed the beginning of the price of coke, such as the substantial increase in mid-coal or steel prices rise, the association will recommended for immediate adjustment of prices to adapt to the market.
And mid but not just over a week, Shanxi Coking Industry Association has issued on the July 2009 guidance on coke market additional comments will change in July of coke guide price 1710 yuan / ton, higher than in June 1,650 yuan / ton increased 60 per day. Prior to this, Shanxi Coking Industry Association, established in May of coke guide price in different regions have different degrees of increase, by June, the provincial coke Coking Industry Association will be a clear guide price 1,650 yuan / ton, at the same time, the association of the limited production margin requirements from 60% to 50%.
Coke market demand for the better
Affected by the global financial crisis, the European Union, the United States, Japan and South Korea, a traditional Chinese coke demand for the country, since the second half of last year have cut steel production, thereby reducing the demand for coke in China, a direct impact on China''s coke export market. This year, the country expand domestic demand to maintain growth, increase its infrastructure policy stimulus, the steel market has warmed up, promoting China''s coke market price out of the signs of a rebound in the emergence of market conditions Xianyanghouyi out again.
In the first half of this year, Shanxi coke output reached 33.69 million tons, down 25%, limiting the production of the whole industry in the province close to 40%. Coke market continues international and domestic demand a serious impact, coke production and operations difficult. January occurred in the price of coke increased slightly; 2 the end of the market shrink, coke unmarketable; in March, April coking enterprises have individual flat sign; steel prices bottoming out in May and downstream needs to improve the situation, driving the coke demand, coking coal prices go up, coking enterprises and some flat, some began to generate profits; June the overall steel market prices steady for the better, the domestic coke market is steady trend on the rise.
While the Shanxi Coking Industry Association of coking enterprises in July of the limited production range from 60% to 50%, but the actual output of coking enterprises in the province to release much more than the requirements of the industry association limited production rate. It is reported that most of the coke in Shanxi Province enterprise production capacity from 40% of the pre-release to the present 70% while that of Hebei, Shandong, Inner Mongolia and other places of coke production capacity has been restored from the previous 50% to the current 90%. It is learned that, due to business-to-bullish market outlook, but also stocking the short term, the North China market, demand for coke to the good, the spot price will continue higher.
Market warming should be treated with caution
Stakeholders in Shanxi Coke Group Company that the coking industry, as the iron and steel industry to reduce the coke ratio, development of non-blast furnace ironmaking and other technological advances, demand for coke showed an overall decreasing trend. By the oxygen-rich sections such as coke pulverized coal injection technology, using electric furnace steelmaking using scrap and non-coke iron making technology to improve the quality of steel to reduce steel consumption demand and other factors on the combined effect of coke, coke demand will enter the systolic, is bound to once again push the coke industry to the oversupply, and the prices to drop sharply dilemma. Thus, in the downstream steel market continues to rebound under the premise is not yet stable, it should be cautious about the current market changes.
Meanwhile, the province of the coking industry, make a new plan: in the provincial government released the Shanxi Coking industrial restructuring and revitalization of planning made clear that by 2011 the number of enterprises in Shanxi Coking over from the current 270 down to 150 home within the coking enterprises to change the province''s small and scattered the structural model and strive to enhance the coke industry concentration and economies of scale and anti-risk ability to cultivate a large coking enterprise groups.
In addition, from July 1 onwards, in addition to continuing the implementation of water and water resources compensation fee policy, the provincial government to take on the various charges were reduced, exempted from the (closed), held over policies, so that the focus coking enterprises in the province tons of coke to reduce expenses up to 53.4 yuan. Among the various policies and measures of support, the province coking industry has begun to embark on a steady recovery in the healthy development track.