Shanxi Coking industry announces declining profits
The blind productivity expansion in the Shanxi coking industrial region of
China led to 20% decrease in the industrial profits throught the first two months of 2005.
The profits of the industry through the two months reached RMB 217 million ($26.22 million), which marks a 23.6% year-on-year decline.
Apart from the blind capacity expansion, the rising coal price and the improving technology in metal industry which reduced coke
consumption are the other factors which led to a decrease in profits.
The coke price in Shanxi province is expected to drop further unless the government takes additional measures to control the capacity expansions of the industry.