Because of the short supply and rising price of coking coal, coking coal enterprises in Shanxi all raised quotes since early May. Yesterday, reporters with Shanghai Securities News learnt from coke plants in Linfen and Jinzhong that currently, the main quotes of the first-class metallurgical coke are 2,300 yuan/ton-2450 yuan/ton, the second-class metallurgical coke around 2000 yuan/ton, all increasing about 200 yuan/ton than the last month, equivalent to up nearly 10% from the same period last year.
Ma Xiaoguang, a joint metal analyst, said that the soaring coke price in Shanxi is mainly due to the short supply of coking coal, which leads to some coke enterprises operating below capacity, thus lowering production, storage and supply. The driven by both the upper and lower reaches of the market, coke prices skyrockets.
Analysts from coke enterprises in Linfen said that if the shortage of coking coal and coke can’t be alleviated, there will still be room for the further rising price of the first-class metallurgical coke in the future.
The latest date released by Shanxi Coking Association showed that production increase is still limited by the shortage of coking coal and inadequate transport capacity, which leads to the lingering price hike of coke, thus causing the fact that steel plants in the lower reaches can’t buy coke even at a high price. At present, 70% of the coke in the domestic coke market comes from Shanxi.