According to the data released by CISA, Chinese domestic coke price had hiked up for consecutive six weeks till last week with a cumulative price rise of 4.82%. After the price rally, the coke price was hovering around 1887.5 yuan per metric tons in last week. However, deals clenched were still few and far between due to soft market demand from mills.
Impacted by the overcapacity problems, the development of domestic coke industry has been constrained substantially. Meanwhile, as is known to all, the few coking coal producers have monopolized the domestic market for a long time, which makes Chinese coking enterprises' profits are lower than the social average profit levels. Therefore, the domestic coke producers are basically on the brink of bankruptcy. In this context, the market prospect is still dismal and this situation can not be solved immediately.