Coke continues to drop in Shanxi
It is reported that the market has been confused by the prices of coke in Shanxi as producers continued to significantly cut their ex-work prices on a quiet transaction.
The prices of the second-grade metallurgical coke were offered at CNY 2,400 per tonne to CNY 2,700 per tonne by most plants with CNY 2,200 per tonne to CNY 2,300 per tonne as the lowest. Major coking plants in Shanxi decreased the price of coke by CNY 100 per tonne in September, provoking dissatisfaction among steelmakers.
Coke producers are likely to further cut production on an obviously rising stock due to the absence of demand from the steel industry. The situation will be worse with 10 million tonnes of new capacity ready to be launched in the second of this year or the first half of next year in Hebei.
The export duty of coke has risen to 40% over the past two years, sending the price of coke to CNY 3,000 per tonne in the middle of the year from CNY 2,000 plus per tonne early this year. The price experienced a massive drop later due to foreign customers' decreased buying on rising costs and the delayed recovery of normal operations among the domestic mills during the post Olympics economy.
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