China Mining reports that the rebound in China's coke price since the start of the year is only expected to last until most coal mines resume production in March.
Analysts suggest that the current rebound in price is related to the decline in coking coal output during the Chinese Spring Festival.
According to statistics from Umetal, coke prices have surged by 40 percent in the last two months. The price of second-class metallurgical coke in East China hit CNY 1,700 to 1,850 per tonne on February 3rd up by CNY 150 to 250 per ton from the price at the beginning of January.
The guide price for coke set by Shanxi Coking Industry Association was CNY 1,750 per ton in January up by CNY 150 per tonne from December 2008.
Analysts with Umetal note that the coke price surge was due to a supply shortage caused by a suspension of production in Shanxi province before the Spring Festival,
With the implementation of the government's macro-economic stimulus plan, the hoped-for increase in production of steel will boost demand for coking coal.
Source: Steel Guru
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