China’s coke industry calls for consolidation
On the second day of the June 23-24 First
China Coke International Market Seminar held in Beijing, representatives from various Chinese coke producing companies called for consolidation within their industry.
Speaking at the seminar, Hua Zugui, the chairman of
China Coal and Coke Holding Ltd., welcomed the macro-control measures taken by the government to cool down the steel industry. He described them as highly significant for coke industry, a major upstream industry for iron and steel.
Hua Zugui dew attention to the coke supply surplus in
China. While the expected coke demand for 2005 is around 220 million tons, the current coke output capacity is approximately 260 million tons. According to the chairman, the consolidation of smaller coke companies into larger ones is required in order to reduce the surplus and bring supply and demand into balance.
Also speaking at the seminar, ThyssenKrupp MinEnergy
China chief representative Catherine Luo warned that
China would not export coke at favorable levels in 2005. Luo described the existence of many small companies as a threat to the coke industry. She said that in order for the Chinese coke industry to become dominant in the international markets it would need to consolidate sooner rather than later.