China's major coking plants become reluctant to compromise to their end users when more of them fell into deficit situation after steel mills beat down their purchasing prices again and again.
Fenwei minoring data showed the average margin were in a rather low level at surveyed coking plants across the country.
Currently, margins average -83 yuan/t at surveyed plants in Inner Mongolia, -3 yuan/t in Shanxi, and 45 yuan/t in Shandong, the highest level all over the country.
Margin is expected to remain low for a while in the coking industry. Coking plants in northern Jiangsu increased their selling prices to traders, a spark of rise that was put out quickly by steel mills, which lowered 100 yuan/t for their coke purchasing prices.
A coke producer in Taiyuan, Shanxi province reported loss after the steel mills' press-down. He also expected coke prices to go down further, which he attributed to lack of cost support in the short term. "Coking coal prices will fall more largely.
Quasi Grade I met. coke were offered at 1,550 yuan/t, ex-washplant with VAT, he said.
Another coke producer hailing from Wu'an, Hebei province said local coke enterprises refused to lower offers again, adding "they will cut production to hold prices steady if necessary."
He offered the Grade II coke at 1,560 yuan/t, ex-washplant basis with VAT.
A Jiangsu-based producer expressed strong willing to support prices as their coke sold not bad to southern steel mills via ports. He pegged the Quasi Grade I met. coke at 1,750 yuan/t, ex-washplant basis with 17% VAT.
(Writing by Alex Guo Editing by Tammy Yang)
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