SHANGHAI, Jan 10 (SMM) - On the morning of January 6, 2023, the Market Committee of China Coking Association held a video conference on market analysis. Participants of the conference said that while the coke prices were cut, the unchanged coal prices increased the losses of coking companies, who started to step up efforts in restricting the production. It is reported that the profits of whole coke industry already slipped into the negative territory, with some coking companies suffering a loss as high as 200 yuan/mt.
To address this issue, a few suggestions are put forward at the conference. First, coking companies are recommended to arrange maintenance based on individual demand, with the aim to lower the capacity to ensure a safe and clean environment for the Chinese New Year holiday. At the same time, coking companies are advised to reduce or stop the purchases of high-priced coal so as to narrow their losses. Second, the companies are called upon to refrain from any move that could further aggravate their losses. For example, orders shall come before the production, sales shall entail profits, and “no payment, no delivery”. Third, the coking enterprises are suggested to optimise their sales channels by prioritising deliveries to customers with good credit, in-time payment and fair prices.