Huang Jingan, chairman of the China Coke Industry Association, stated on June 3 that, influenced by steel price decreases, Chinese coke prices in June may drop by RMB 100/mt month on month, adding, however, that there might not be much change in prices in the second half of 2010.
Although the coke industry associations of the Chinese provinces of Shandong and Shanxi have not yet published their June coke prices, many coke producers in northern provices such as Shanxi, Hebei and Shandong have already lowered their ex-mill prices for coke, while many producers are facing losses, Mr. Huang said. He went on to say that, with steelmakers being the main downstream customers of domestic coke producers, accounting for 90 percent of coke consumption, the decrease in steel prices in the second quarter severely impacted the coke industry.
Mr. Huang added, "China is the largest coke producer in the world. Viewed from the energy consumption viewpoint, China does not need to increase coke output, and some coke producers should consider changing the focus of their production." He also stressed that small coke producers currently face large risks.