Interfax-china has quoted an employee from a coke producer in Shanxi Province as sayingng that the Shanxi Coking Industry Association may lift its coke reference price in August by CNY 50 per tonne from the previous month due to rising coking coal prices.
The anonymous employee - from the sales department of Shanxi Coking Co Ltd, China's biggest coke producer - said "Domestic coking coal prices have been rising since July 20th which has increased our production costs. As such, we think the enterprises that report to the SCIA are very likely to agree to raising the August reference price."
The source added that the company recently resumed operations at more of its coke production facilities, as demand from the downstream steelmaking industry increased. Currently, only around one third of the company's total 3.6 million tonne annual coke production capacity is dormant.
Mr Zeng Lili an analyst from ChinaCCM.com said "Some Chinese coke producers are refraining from selling at the moment which will tighten market supply and support domestic coke prices."
In June, China's crude steel and coke output increased by 6.38% and 14.65% MoM respectively.
SourcE: Steel Guru
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