According to the new price list published by SCIA (Shanxi Coking Industry Association) dated March 15, the association's recommended price of coke products for March will stand at RMB 1,700/mt, including VAT, for cash payment, down RMB 150/mt. (The product in question contains less than 0.7 percent sulphur and ash content of 12.5 percent and below).
Coke prices in the local market in China's Shanxi Province have kept rising throughout the first two months of 2009; however, due to slack demand in the market, the local mills have decided to cut their prices on ex-mill basis. Currently, the mainstream offers in the market from local second tier suppliers are at around RMB 1,550/mt, with first grade metallurgical coke being offered at RMB 1,700/mt. Mills that have suffered great losses in the current economic downturn have continued to cut back on their production. At the current time, overall production in Shanxi Province has been reduced by 60-70 percent.