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Shandong also promotes coke production restriction policy Weifang coke enterprises limit production by 50%
Jul 15,2019 12:34CST
translation
Source:SMM
Due to the impact of environmental protection, Shandong Weifang coke enterprises have been asked to limit production by 50%, some coke enterprises said that they have begun to implement, the end time will be announced. It is understood that the total coking capacity of Weifang area is 4.3 million tons (including 800000 tons of coking capacity of steel mills), which is expected to affect coke production of about 5000 tons.
The content below was translated by Tencent automatically for reference.

Due to the impact of environmental protection, Shandong Weifang coke enterprises have been asked to limit production by 50%, some coke enterprises said that they have begun to implement, the end time will be announced. It is understood that the total coking capacity of Weifang area is 4.3 million tons (including 800000 tons of coking capacity of steel mills), which is expected to affect coke production of about 5000 tons.

This is following the release of some environmental protection policies in Shaanxi and Shanxi, Shandong launched environmental protection measures for the coal industry. Shaanxi Province wins the 2019 Action Plan of the Blue Sky Defense War. Shanxi Province will actively deal with heavily polluted weather, and the pressure on environmental protection is expected to increase in the second half of the year.

The price of coke has been suppressed because the profits of steel mills have been suppressed by the cost side. Up to now, the coke market in most areas has been reduced by three rounds, with a cumulative reduction of 300 yuan /. At present, the average profit of quasi-first-class coke in Shandong is 92.18 yuan / ton, and the profit of coke enterprise is on the low side. If the steel plant continues to raise the coke price in the later stage, the resistance mood of coke enterprise will rise obviously. However, Tangshan Steel Plant is affected by environmental protection, the procurement demand for coke is weak, and the coke market is still weak.

However, in recent days, some coke enterprises have raised prices, but the degree of acceptance. Linfen, Shanxi Province, individual coke enterprises rose 100 yuan / ton, market confidence received a certain boost. Downstream aspects of the recent mainstream steel plant coke inventory is basically stable, there are no obvious signs of rise, port traders inquiry enthusiasm increased, port resources a small number of low-price transactions.

At present, the operating rate of coke enterprises is still at 80.79%, steel mills on-demand procurement inventory available for 14.5 days, port inventory is higher, these factors are not conducive to coke prices.

(Coke port inventory is high, source: Citic Futures)

From the market price point of view, the mainstream price in East China market is 1800-1850 yuan / ton, 1850-1900 yuan / ton, and 2050-2150 yuan / ton, respectively.

Judging from the current market environment, the production restriction of steel mills in Tangshan is still an important factor affecting coke price. The impact of the special action of "100 days clearing zero" for environmental protection in Shanxi is still unclear, and the overall coke market is still in a weak situation.

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