During April 23-25, 6^th Steel Development Strategy & Supply-Demand Forum was successively held in Shanghai , on which Mr. Huang Jingan, Chairman of China Coking Industry Association, delivered a speech named China Coking Industry Development and Steel-Coke Market. Huang said that rapid development of steel industry has underpinned coke demand. China coke production increased 25 percent in the first quarter of 2010, the rate flat with steel industry. Huang highlighted that current coke industry is heavily pressurized by coke overcapacity, metallurgical coal supply tension, diminished exports etc.

Coke Industry Restructuring Achieved a Lot

Mr. Huang introduced that China totally closed 150 million tonnes backward coke capacity since January 2005 and average capacity climbed up to 450,000 tonnes. By structure, top-charged coke capacity covered around 70 percent of total capacity, and the rest 30 percent belongs to foundry-use coke, semi-coke & needle coke for ferroalloy and calcium carbide use.

China Coke Capacity Excessive

China ’s coke capacity is expanding uninterruptedly in recent years accompanied with steadily rising pig iron production. In recent five years, China newly-built coke capacity hit around 140 million tonnes, around 60 percent comes from the coke ovens (> 5.5mm ).

Dragged down by high export tax and weak demand from international market, China 's coke export plummeted sharply from 2009. Steel export market will perform better 2009, which as a result will push up coke industry. But the international trade protectionism and wide price spread at home and abroad will continue clouding China 's coke export situation.

China Coking Industry Development and Steel-Coke Market

               by Huang Jingan, Chairman of China Coking Industry Association

Metallurgical Coal Price Keep High; Coke Enterprises' Margin to Be Squeezed

Chinese government is working hard to rectify small unsafe coalmines, which will cause a tight supply and a rise in metallurgical coal, said Mr. Huang Jingan. In 2009, China imported a total 34.49 million tonnes of coking coal. This year, high international coal offer and stable coal industry development in China may weaken China 's coking coal imports, but the tight supply and price hike will continue. Therefore, coke enterprises' cost will continue growing up, and the margin will be further squeezed.

Coke plants should control production and organize the operation in line with market orders so as to reverse their passive position, said Mr. Huang Jingan.