SHANGHAI, Oct 27 (SMM) – Due to the environmental protection regulation, the production restrictions are tightening for some companies in Shanxi. Some coking companies in Fenyang city have been required to shut down some 4.3-metre coke ovens before November 10, which involve a production capacity of 3.2 million mt.
The regional coke supply has tightened. The higher the coking coal prices and the transportation costs have compressed the profits of the coke companies, prompting some companies to raise the prices.
Most steel mills have the reasonable coke inventories currently, and some steel mills still restrict the production due to the power rationing, so the demand for coke is average.
The coking coal prices stand high, and the coal mines across the country have expanded the production. The thermal coal prices have dropped, leading to the stronger wait-and-see sentiments in the market.
However, the coking coal supply remains tight amid the strict control on the coal production, and the auction platform has been closed, making the purchase harder for the traders, which strongly supports the coking coal prices.