It is reported that Mr Zhang Gangfeng s,ecretary general of Shanxi Coking Industry Association while speaking at a conference held by SXCIA last week urged members of the association to limit outputs in an attempt to stabilise the market price.
Mr Gangfeng said that due to tight coking coal supply, ex-works price for prime coking coal and rich coal reached a record high of CNY 1800 to CNY 1850 per tonne in Shanxi's Linfen, Jinzhong and Yuncheng last week. He added that “members at the conference complained about scant supply, low quality and high price of coking coal. Besides, freight rates are increasing as the Olympics approach. In the meanwhile downstream steelmakers are reluctant to accept current coke prices.”
Mr Zhang said members should limit outputs according to their own conditions and to try to stabilize prices for coke and coking products. He said that "We will jointly try to solve the common problems we face.”
All the small coal mines in Linfen, most of which are mainly engaged in coking coal, have suspended productions since the mine accident in Hongdong in 2007. Small mines in Jinzhong also have to hold off productions as Beijing Olympics loom. The remaining several major miners can hardly meet robust demand from downstream industries.
Shanxi Coking Coal Group, the dominant local supplier, has offered the most favourable price for large steelmakers, but prices quoted by medium miners and coal cleaning plants post a sharp uptrend. Traders almost adjust sales prices every day.
Source: Steel-prices India
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