August 29, 2008

Tianjin Port sees 15% YoY increase in coke exports in 9 months

Customs statistics show that China's January to September 2007 coke exports totaled 9.33 million tonnes worth USD1.717 billion up by 14.7% and 55.3% respectively on a year on year basis. The average export prices go at USD 183.9 per tonnes FOB, an increase of 35.3%YoY

It is learned that 50% of the coke that exported through Tianjin port go to Japan, Brazil and Belgium. Coke producers in Shanxi Province, the major force of exports, shipped out 5.08 million tonnes through Tianjin port during January to September period.

The major reasons for the increase in both export volume and prices are believed to be as under:

A) The growth is bolstering by the continuous increase in world steel output since steel industry account for 70% of the total coke demand. The coke output in developed countries are reduced greatly due to environment protection, thus they have to import coke from China to meet their demand.

B) The jump in export tariff lifts coke export prices to USD 340 per tonnes to USD 350 per tonnes FOB. Since June1st 2007, China improved the export tax rate to 15% from 5% so as to further rein in coke exports. However, as a result of robust coke demand on international market, importers are willing to bear the price hike, which has led to jack up in both export tonnage and price.

C) The rise in raw material price is adding to cost of coke. Coking coal prices account for 75% and up for the total cost of coke production. While coking coal prices are growing substantially because producers are levied some fee or tax for the sake of environment protection. In addition, increase in inland transportation rate is driving up the coke export price.

(Sourced from MySteel.net)