SHANGHAI, Nov 25 (SMM) – Dalian coke prices jumped about 5% to the highest in nearly two months on Monday morning, following the report that 14 coke plants in China’s top steelmaking hub of Tangshan have been required to shutter for lack of discharge permits.
The most active coke contract on the Dalian Commodity Exchange for January hit its highest since September 30 at 1,913 yuan/mt in morning trade, leading the gains across the ferrous complex.
The 14 coke plants have yet to receive all the environmental-related approvals, but already come on stream, and 11 of them were in operation when environmental authorities of Hebei province issued the requirement for closure.
There is 34.45 million mt of coke capacity in operation in Tangshan, with 14.35 million mt belonging to the 11 plants.
Hebei’s move came along with Shandong province requiring a slew of coke plants to close by the end of November.
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