As the weather in the past few days is as cold as in the north, the fate of most coke enterprises in Shanxi is “between the front lines”.
"Compared with the price at the beginning of this month, the primary coke dropped by more than 200 yuan, while the secondary coke dropped by 400-500 yuan. Now the market is thinking that the upstream and downstream sides are upside down, and the coking coal enterprises are under great pressure." Shanxi was a bit impatient with a person in charge of Liu Coking Coal Group.
However, due to the larger scale of the Liucao Coal Group, the days seemed to be better than other coke enterprises. At the entrance of a large number of coke enterprises in Xiaoyi City, Zhongyang County, Linxian County, Luliang City, it seemed that there was no vitality.
4 trillion "opportunities"
"Basically closed, the first is to limit production coke, the second is not worthwhile now, dry one day a day." Luliang County, a coking company's head in an interview with the "First Financial Daily" said.
Yesterday, the offer price of Shanxi Linfen primary metallurgical coke was 1,400 to 1,500 yuan/ton, which was 200 yuan/ton lower than the beginning of the month. The price of the secondary metallurgical coke seemed to be even lower, and the price of secondary metallurgical coke produced by Jiexiu was 1000~ RMB 1100/t, but at the beginning of this month, the price of secondary coke with the same ash content and volatility was RMB 1550-1600/t.
"Actually, the transaction price is even lower." The above-mentioned person in charge of the Linxian coking coal enterprise also said at the same time.
Lange Steel released a report yesterday that the domestic coke market was oscillating at a low price, spot trading in most regions was in the doldrums, and the offer price continued to fall.
Lange Steel analyzed the two conditions of coke downturn in the report. On the one hand, the steel market was in a sluggish state, and the purchase volume of steel mills shrank. On the other hand, the price of coal coke was higher and the coking plant was in a loss, but due to the large inventory, only Can throw cargo at low prices.
However, Lange Steel also said that with the decline in coal prices, coking coal prices will be reduced in the latter part of the coking plant will not long-term losses, but the spot market in the case of low demand, the market outlook is difficult to pick up.
Stimulated by the central 4 trillion investment, the coking stocks have rebounded. Some analysts believe that 4 trillion yuan of investment will help the steel market to pick up, at the same time it will drive the rebound of coke prices.
Shandong Jiaoqi “Blanks for Heating”
Xishan Coal (000983.SZ) is the leading coking coal producer in China. The company’s announcement on the 14th stated that it had decided to reduce the price of its coal products, coking coal, refined coal, and lean coal, by RMB 500/ton each from the 1st of November. Among them, the company's coking coal price was reduced to 1,225 yuan / ton (including tax); Feijing coal price was lowered to 1,290 yuan / ton (including tax); lean coal prices were lowered to 830 yuan / ton (including tax).
“The situation in the upper and lower reaches has finally been relieved.” An official from the Shanxi Coking Association felt a little relieved.
“As the overall demand for coal declined, local coal mines will reduce the price of pits and lower the cost of coking coal. Recently, the local coking coal companies continue to cut the price of coking coal by RMB 200/ton.” The person in charge of the Linxian coking company stated last.
Affected by this, the industry's general attitude is that in the case of a poor export situation, the demand for coke in the later period is unlikely to improve, and there is still room for downward movement in spot prices.
In Shandong, there was a massive M&A battle.
In early November, eight departments including the Shandong Provincial Economic and Trade Commission jointly issued a circular to support the development of 22 key coking enterprises, and plans to set up a large coking enterprise to advance the restructuring of the coking industry.
Wang Qingtao, chairman of the Shandong Coking Industry Association, believes that with the current market situation and industrial adjustment policies, 22 major coking companies will set up a large coking enterprise. After the establishment of the company is successful, the production capacity will reach 20 million tons and become the world's largest.
"Actually, this is a frustrating move. Originally, Shanxi considered this too. Finally, it is over. No one wants to carry a monopoly reputation." The official from the Shanxi Coking Association said.

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