Himfr Analyzes Chinese Coke Price Development

Jun 07, 2010, 10:00 ET from Himfr.com

BEIJING, June 7 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzes Chinese coke price development.

At present, due to the fact that Shandong, Hebei and other regions of the coking enterprises are still in limited production status, the coke supply will not increase; and as steel production moves into the peak season, the demand for coke will increase. The iron ore industry now faces rising tension, as steel mills have to reduce procurement costs, and the purchase price of coke may face adjustment. Therefore, the current cost of supporting the Chinese coke market presence, combined with supply reduction and demand pick- up, coke prices are bound to continue a steady rise of late. However, considering the pressure of the cost of steel procurement, coke prices will likely rise sharply.

In March, while steel prices bottomed out, the price of iron ore raw materials was also changing, but the coke market has been stagnant until recently revealing signs of improvement. In early March, the secondary metallurgical coke price was 1,950 RMB/ton, but the market downturn made it difficult for prices to level out. Subsequently, some steel enterprises reduced the purchase price, and coking enterprises incurred heavy losses. With rising steel prices and limited production of coking enterprises, coke prices appeared to stabilize sign in March late.

As the coal supply market resources tighten and companies face transportation difficulties, some Chinese coal companies still continue to limit production, but there are some companies returning to capacity. According to the National Bureau of Statistics, data released in February on China's coke output showed 28.601 million tons, a year-on-year increase 17.26% compared to same period of last year. From January to February, China cumulatively produced 58,912,000 tons of coke, year-on-year up 23.4%. Since February, the current Chinese coke supply and demand is basically balanced. Later if the limited production of coke continues, the supply of coke will improve, which will also help stabilize the price of coke. (http://www.himfr.com/list-product-Minerals_Metals_Materials-22000000-1.html )

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