Coke price in China increase by CNY 80 per tonne
It is reported that Shanxi Coking Industry Association members have nailed down a CNY 80 per tonnes price hike following the thermal coal price rise, pushing up first grade metallurgical coke to CNY 1400 per tonnes to CNY 1450 per tonnes and the second grade coke to CNY 1300 per tonnes to CNY 1350 per tonnes. This is the fourth time coke price is raised and is largest.
The association noted the price hike is attributable to coal price gains across the province.
According to Mr Lai Lihui analyst with Great Wall Securities "As domestic coking enterprises are all members of the Shanxi Coking Industry Association, other provinces like Henan, will follow suit once Shanxi hikes the price and this move can be understood with the whole coke industry."
He said the price hike would mainly influence the smelting industries, like metal and steel making. Take pig iron as an example, coke covers a 20% to 30% ratio of the cost and this hike is to raise the cost by 5% to 6% accordingly.
Source: MySteel.net
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