China Coking Industry Association: Serious overcapacity of coke

International Coal Network News: In December, the coke associations in major coke producing areas such as Shanxi, Shandong, Hebei, etc. have successively raised local coke-guided prices, and the coke market is once again showing signs of picking up.
However, it was learned from the China Coking Industry Association that the issue of overcapacity in China's coke industry is still severe. The association stated that it will continue to implement access conditions to eliminate backward production capacity.
The coke market picked up from the beginning of November, the domestic coke market prices stabilized, Hebei Coking Industry Association will increase the coke factory guidance price 30-50 yuan / ton, the national standard secondary metallurgical coke implementation guide price (tax included) 1650 yuan / ton . Since December, the coke market has continued its warming trend, and various regions have increased the coke guide price.
The Coking Industry Association of Hebei Province raised the price of coke in December by 50-100 yuan per ton. In December, the implementation price of the national metallurgical standard metallurgical coke (tax included) was 1,750 yuan per ton. It also indicated that the price of coke may continue to be adjusted upwards according to the market conditions. . The Shanxi Coking Industry Association proposed that the coke price in December (vehicle tax included) be a minimum of 1,750 yuan/ton; the coking price in December issued by the Shandong Coking Association was 1,830 yuan/ton for a primary metallurgical coke, and the secondary metallurgical coke The regional guide price is 1750 yuan/ton.
The Shanxi Coking Industry Association stated that since November, coking coal and coal resources have remained tight, and coal prices have generally risen by 30 to 80 yuan per ton; road transport has risen due to rising oil prices and slippery roads and poor traffic. The railway transportation was also relatively tight. Affected by this, the cost of coking enterprises increased significantly and the enterprises suffered serious losses. The price of coke has not been adjusted for two months.
The steel market has been improving in the near future and steel prices have continued to rise on a small scale. It is understood that since the coking industry in the previous phase implemented limited production and price-insured measures, coke users of coke and coking enterprises all have their coke inventories declined.
For this guide price, the Shanxi Coking Industry Association stated that “it is based on price that the coking company is still losing money. If there are major changes in the coal, steel and transportation markets, the association will make timely guidance on adjusting the price of coke.”
Continued elimination of backwardness The coking industry associations have not been blindly optimistic about the recovery of the market. The Shanxi Coking Industry Association requested the coking enterprises to continue to strictly implement the principle of sales and production, and continue to arrange production according to the restricted production range of 60%-70% to stabilize the market supply. Shandong Jiao Xie also proposed a 30% limit of production requirements.
Every fluctuation of the coke market is affected by the steel industry. The main reason is that there is a serious overcapacity in the independent coking industry in China. The fluctuation of product prices completely depends on the downstream “face”. In general, large-scale steel mills have their own coking plants. They will only purchase from the independent coking plant when the coke produced by the steel mill is not enough, which makes the fluctuation of the steel industry often spread to the coke industry.
According to the data provided by the China Coking Industry Association, in the first three quarters of this year, the output of coke from 253.69 million tons in the country, the focus of large and medium-sized iron and steel enterprises in coke production was 86.13 million tons, an increase of 4.42%; coke production of other types of coking enterprises 16,750,600,000 t, a year-on-year decrease of 0.1%.
Jin Qiang, president of the China Coking Industry Association, said that this year's coke industry will be phased out of backward production capacity will reach 14 million - 20 million tons, but up to now, the new coke oven capacity statistics reached by the China Coke Association can reach 23 million Ton.
According to his predictions, this year's annual coke production will once again exceed 330 million tons. If steel production is not reduced in November-December, the annual coke production is likely to exceed the 2007 level. "After this year, China's coking industry is still facing the arduous task of reducing production costs, maintaining reasonable and reasonable sales profits, and turning losses into profits," said Huang Jingan.
According to the experts from the China Jiaoxie Association, since 2008, the coking industry has conducted industry access audits for enterprises in the industry according to the conditions set by the Ministry of Industry and Information Technology, shutting down backward and eliminating production capacity that is hopeless. Up to now, the Ministry of Industry and Information Technology has announced a list of four batches of a total of 186 companies that meet the access requirements. The list of the fifth batch of proposed announcements has also been publicized, and a total of 76 companies have been listed.
The Coke Association members said that relevant departments will continue to implement industry access next year to speed up the elimination of backward production capacity.

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