October 12, 2008

Coke prices in Shanxi on upturn

It is reported that Shanxi Province has seen a CNY 50 per tonnes hike in coke market as notable adjustments emerge in domestic market and market price are still on up trend. At the moment in Shanxi second grade metallurgy coke is mainly offered at CNY 1250 per tonnes first grade coke at CNY 1350 per tonnes.

Due to restraining Chinese policies, domestic coal resources are still in tight supply and some coke producers complain about difficult purchasing, thus some producers cut outputs, decreasing coke resources.

On the other hand, steel price is blessed with an uptrend, plus resources replenishment for winter production in North China, purchasing is expected to be strengthened.

Some coke producers have required users to raise prices. Despite the small margins, coke market may welcome another hike if other producers follow their companions.

(Sourced from MySteel.net)