China's demand for coke may fall to 280 million to 290 million tonnes this year, a drop of about 9 to 12.5 percent from last year's 320 million tonnes, according to China Coking Industry Association estimates cited by official media on Thursday.
The association attributed the decline to a possible drop in domestic production of crude steel, which has been hit by the slowing economy, and an expected sharp fall in exports both of coke itself and of coke contained in steel exports, the official China Securities Journal reported.
The report added that domestic coking coal prices face relatively heavy downward pressure due to sluggish steel prices. In a separate article, the paper also said the Dalian Commodity Exchange, one of China's three main futures exchanges, had drafted contract specifications for coke futures and their launch was expected to come quickly following China's recent approval of the launch of steel futures. The article gave no concrete timetable for a coal futures launch, however.
China, the world's largest steel-making nation, is the world's largest coke consumer, accounting for about half of global consumption.
Source: Steel Guru
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