Sources from the Shanxi Coking Industry Association have said that the coke guiding price for March has been cut by CNY 150 per tonne only one month after Shanxi province raised the coke price by CNY 80 per tonne. With the benchmark of lower than 0.7% sulphur content and 12.5% ash content, the coke price has been pushed down by CNY 150 per tonne on March 1st from the FOT price of CNY 1,850 per tonne in February.
Previously, the Shanxi Coking Industry Association set the guide price at CNY 1,750 per tonne. When demand grew stronger in February the association raised the guide price to CNY 1,850 per tonne in order to reduce the loss. However, after only one month, the association has cut the guide price by CNY 150 per tonne to CNY 1,700 per tonne.
An industry source said that some coking enterprises in the province had pushed the coke price to an extremely low level. In order to curb this trend and guarantee market order, the association has also started to prohibit the initiative of irrationally pushing down prices distorting the market. In addition, coking enterprises are now being burdened by high production costs due to the high coking coal price, and the cost has even surpassed the selling price. Therefore, the association has proposed that coking enterprises should jointly purchase coking coal to reduce costs while guaranteeing coal supplies.
Source: Steel Guru
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