According to the report released by Shanxi Coke Enterprise Association recently, in order to protect the local coke corporations, the association proposes Shanxi's coke enterprises to cut their production by 50% except for the urban civil gas-related companies, which are advocated to curtail their output by 30%.
It is reported that the coke consumption from domestic steel industry accounts for approximately 85% of the overall coke production. However, impacted by the economic slowdown and tight fund problems, Chinese steel industry has encountered formidable challenges and most of them are reluctant to place coke procurement orders. As a consequence, the metallurgical coke price has dipped by 500 yuan per metric ton since October.
On the other hand, Chinese coke had hit a record high of 37.08 million t in September, up 14% year over year. Meanwhile, the year-to-date production came to 322.32 million t, up 18% as compared to the corresponding period of previous year.
As for the market prospect, experts said the domestic market may continue its downward trend in November and the price is estimated to decline by 100 yuan per ton.