September 08, 2008

Shanxi coke price breaks CNY 2000 per tonne mark

It is reported that Shanxi coke producers have succeeded in increasing the EXW price in the range of CNY 100 per tonne to CNY 200 per tonne in March 2008 on back of escalating raw materials prices and tight supply, with the first grade metallurgical coke price already break over CNY 2000 per tonne.

Baosteel said its purchase price for Shanxi quasi first grade metallurgical coke has already reached CNY 1900 per tonne in February up by CNY 200 per tonne from the year start. Shougang also sees CNY 130 per tonne increase on its purchase price for Shanxi coke.

The spiking coking coal price has squeezed out the profit of coke producers significantly. Moreover, leading producers have stepped up thermal coal production in response to Beijing's encouragement. The reduced coking coal supply has further boosted the market price.

Market analysts predict that the coking coal production would stabilize in the months ahead, and the coke price would also settle down by then.

(Sourced from MySteel.net)