On November 25, coke futures contract (2001) offers at Dalian Commodity Exchange closed at RMB 1,903.5/mt ($270.4/mt), up RMB 93.5/mt, or 5.17 percent from November 22 due to measures announced in the provinces of Hebei and Shandong to shut down several coke plants for environmental-related issues.
14 coke plants in Tangshan in Hebei Province, China’s top steelmaking hub, have been required to close down as they lack emissions discharge permits. The 14 coke plants in question have only held temporary environmental approvals, while 11 of them were already in operation when the environmental authorities in Hebei Province ordered their closure. In addition, Shandong Province has also requested the closure of local several coke plants by the end of November.
Lower supply and higher futures prices have led to some increases in spot prices in the Chinese market, following a few weeks of stability. As of November 26, coke plants in Shandong Province will raise their ex-work prices for coke by RMB 50/mt ($7.1/mt).