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Steel Intensified Limited Production Rate in Three Provinces By Lanbo Jiang

  in Business | Published 2011-10-07 04:05:25 | 153 Reads | Unrated

Summary

Recently, Shanxi, Shandong and Hebei province has three Coke introduced in April of coke industry guidance prices and limited production rate As the downstream steel industry downturn, limiting the production of steel increased

Full Content

Recently, Shanxi, Shandong and Hebei province has three Coke introduced in April of coke industry guidance prices and limited production rate. As the downstream steel industry downturn, limiting the production of steel increased. Coincidentally, the three provinces will be limited to a further increase in production rate to 50%.

According to Shanxi Coking Industry Association, "issued in April 2009 on the coke market guidance," limited production rate of coking enterprises in Shanxi Province from March to resume limited production 50% to 60% to 70%. In addition, according Coking
Industry Association, Shandong and Hebei Coking Industry Association of outgoing information, limited production were restored to 50 to 60% and 50%. This means that almost half of China's coke production capacity will be difficult to release.

Many in the industry say prices are still down in coke case, the current 100 yuan per ton of coke loss, not two months, there will be a large number of coke enterprises to close down.

Coke is still down 100 yuan per ton of space It is understood that the price of coke last year, really a roller coaster ride of the trip, the continued rise, the last in June had reached 3,200 yuan in the high, then dropped to 1,300 yuan / ton, then when the coke price in Shanxi Province has turned out 1,000 yuan / ton at the magic price recovery in the beginning of the year to mid-February had the highest return to 1750 yuan / ton, while the price has recently dropped to 1400 ~ 1450 yuan / ton and gradually stabilized.

However, analysts still believe there is room for reducing the price of coke. Analysts said the current 90% of the coke used in steel industry, the steel market, where no signs of improvement, still hard to see the heavy volume of coke signs, coke prices are still lower room rate is 100 yuan / ton.

Market performance is not satisfactory. In March, many steel mills reduced the purchase settlement price of coke. Coke price cuts, such as Tianjin Pipe 300 yuan / ton, Tangshan Steel coke purchase settlement price down 150 yuan / ton, the other steel mills in Tangshan region of coke down the purchase price of 150 ~ 200 yuan / ton, Shougang coke down the purchase price of 200 yuan / ton .

Loss of coke per tonne coking Coking Industry Association 100, Hebei Province, said the Secretary-General Zhang Bochun, coking enterprises are loss of 100 yuan per ton. The reason is the high price in the previous period, the excess inventory of raw materials procurement, as there is no downstream demand, raw material inventory has been difficult to digest. It is understood that in mid-February, as a raw material for coking coal coke price is still 1,400 yuan / ton, and now the price has dropped slightly, down to 1,150 yuan / ton.

"Last year, coking enterprises in the second half of heavy losses. The most serious losses when the loss of 1 ton of coke up to 1,000 yuan," the first half of the price from last year, climbing into the second half is physical agents, Zhang Bochun the case said. Shanxi Coking Industry Association, Zhang Gangfeng, has recently held "2009 cum-coking industry market information release to run to analyze the situation," also said that the current per ton of coke, coking enterprises in Shanxi loss 100.

Zhangbo Chun and Zhang Gangfeng think that, if the situation has been sustained, the industry reshuffle is inevitable, a large number of coking enterprises will close down. Zhang Gangfeng stressed Road, time should not two months.

Or purchase of overseas coal landing of domestic coal prices, "coke industry should join hands to suppress the price of coal and steel enterprises." At this point, Zhang Gangfeng's very emotional, should rely on China Coking Industry Association to establish a unified mechanism for centralized procurement of imported coal. According to industry sources, the current domestic and international coal price differential is not large, due to the distance involved, domestic enterprises are still reluctant to purchase foreign coal. However Zhanggang Feng believes that steel companies should jointly negotiate with foreign coal enterprises, to obtain concessions to overseas coal, this way, the domestic coal enterprises to compete for market share, had to cut prices to achieve the result of suppressing the price of coal.

"Coking coal is still a large profit from the coking coal costs, the major ore mining cost of 500 yuan / ton, local and individual mine costs only 300 yuan / ton, about accounting, but also social costs 100 yuan / ton, but the selling price of a tonne of coking coal is a thousand dollars. "Zhang Gangfeng introduced, and now the cost is still high coke enterprises, in the Shanxi coke enterprises to take 1 ton of coke 72 dollar energy fund. Minimum of 18 yuan per ton for sewage treatment.

21pbn

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