Posted on 06 May 2021
Total output of coke among the 230 Chinese independent coking plants surveyed weekly by Mysteel slid for the eighth week over April 22-28, declining by 15,200 tonnes/day on week to 592,900 t/d on average to refresh a 14-month low. The sustained decline was mainly a consequence of the tough checks that local governments are conducting on environmental protection facilities among coking plants nationwide, according to sources.
This week, the lower coke output was still mainly observed in North China’s Shanxi province, the country’s largest coking base, due to the ongoing pollution control inspections there. For example, the average coking capacity utilization rate among makers in the province’s Changzhi city had plunged by 14.6 percentage points on week to 71.6% over the same survey period, Mysteel’s data showed.
Coke demand was buoyant over the survey week, as some steel plants increased coke procurement to ensure they have sufficient inventories to last them during the Labour Day holiday over May 1-5, according to survey respondents. However, “due to the limited stocks available at the coke plants, deliveries from some coke makers were comparatively slow,” said a Shanxi-based industry source.
As of April 29, total coke stocks at the 230 coking plants had dropped by 67,100 tonnes or 10% on week to 618,200 tonnes, the lowest they’ve been since February 5. On Thursday, total coke stocks held by Mysteel’s sample of 110 Chinese steel mills had decreased too, easing by 96,500 tonnes or 2% on week to a two-month low of 4.6 million tonnes, the survey data showed.
Traders were also active in replenishing coke stocks this week in response to the bullish market sentiment, Mysteel Global noted. As of April 29, coke inventories at the four Chinese ports where the traders’ coke purchases are mostly stocked, had risen by 32,000 tonnes or 1% on week to 2.7 million tonnes, Mysteel’s survey found, a seven-month high.
To secure a steady coke supply, this week leading steelmakers in North and East China quickly bowed to the merchant coke makers’ demand for a Yuan 100/t increase effective from April 28 – just seven days after accepting the makers’ previous increment. As of April 29, Mysteel’s national composite coke price had gained Yuan 150/t on week to reach Yuan 2,266.5/t including the 13% VAT, a new high since March 19.
Source:Mysteel Global
