SteelOrbis Shanghai
The
production capacity of Chinese coking plants approached 300 million metric tons by the end of 2005, while the actual coke output was 243 million metric tons in 2005, 30 million metric tons above the demand.
According to the statistics from the
China Coke Industry Association (CCIA), there are 37 coke ovens under
construction and expected to be put into operation in 2006 with a total
production capacity of 20.60 million metric tons. By 2007 and 2008, another 60 coke ovens with 39.7 million metric tons of capacity come on stream. If the current
production capacity remains unchanged,
China's total coke capacity will exceed 350 million metric tons by 2008.
With the rapid release of coke capacity, domestic coke prices dropped to the current RMB 900 ($112)/mt level from the highest RMB 1,300/mt ($161) to RMB 1,400/mt ($174) in 2004. The export price of coke fell to the current $130/mt from $263/mt in 2004. Many coke companies make losses. The coke market condition will be worse if the coke capacity expands further.