According to the China Coking Industry Association the price of coke will continue to stay at a high level this year amid surging demand and rising cost.

Mr Huang Jingan chairman of China Coking Industry Association said at a conference held here in Beijing that increasing demand from the steel industry will largely boost the price for the key residue used in the smelting process. He said China's steel industry produced about 959.2 million tonnes of crude steel and iron last year and consumed 90% of the country's coke output. He added that "Consumption will continue to rise amid growing steel and iron output this year."

Mr Huang said "As the government has raised duties and charged more pollutant tax on coke products, the coke plants have to afford more expense. The growing expansion of coke production will certainly be passed onto the price."

According to a Union Bank of Switzerland report, coking coal output in the world is expected to stand at 211 million tonnes this year, while the demand may hit 221 million tonnes. Demands from China, India and Brazil will remain robust among other countries.

China is the largest coke producer in the world, accounting for 60% of world production in 2007.