It is reported that China coking industry associations in Shanxi and Shandong have both suggested coking enterprises put a cap on coke output to maintain price at current level. The associations hope enterprises restrict outputs to ensure their profits.

In view of tight coking coal supply, Shanxi Coking Coal Group raised prices in early August by CNY 300 per tonne for fat coal and primary coking coal and CNY 260 per tonne for lean coal. Before this the products were quoted at CNY 1480 per tonne, CNY 1410 per tonne and CNY 1100 per tonne respectively.

Coking coal price has increased by CNY 150 per tonne to CNY 300 per tonne in July equaling to additional cost of CNY 300 per tonne for coke.

On the other hand, prices for pig iron and steel products in domestic market keep falling in recent two months. Steelmakers can hardly afford further coke price rises, given increased cost, unsmooth sales and difficult fund turnover.

Industry analysts point out that against such a backdrop, coking enterprises have to restrict outputs to maintain profits. Coke market will keep firm at the moment.

Statistics from customs show coke export price during January to July surged 150% to USD 432.4 per tonne from USD 170.5 per tonne in the same period of last year. Total export volume of coke and semi-coke lost 8.3% to 8.27 million tonnes but export value roared 132.5% to USD 3.58 billion from USD 1.54 billion.

Export volume in July only registered 830,000 tonnes down 670,000 tonnes from the 1.5 million tonnes in June and down by 15.3% compared with the 980,000 tonnes in last July.