Price increase of 50-70 yuan/ton – fourth round of price hikes for coke!

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Fourth round of price increase for coke! On the morning of November 7, representatives from key coking enterprises from Shanxi, Hebei, Inner Mongolia, Henan, Jiangsu, Shandong, Shaanxi, Ningxia, Jiangxi, Yunnan, Guizhou and other regions held a special market analysis meeting. Taking into account the current macroeconomic environment and industry trends, the participants conducted an in-depth analysis of the supply and demand dynamics as well as price trends in the coke market. 1. The price of coking coal continues to rise; since June, the increase in coal prices has been between 350–670 yuan per ton. The price of thermal coal has also risen to 830 yuan, which is 60 yuan per ton higher than in January. The price of main coking coal in Anze has reached 1670 yuan, up 240 yuan per ton from January. Coal inventories among coking enterprises are generally low. Given that coal production is likely to be further restricted before the end of the year, leading to limited supply, coal prices are likely to continue rising in the future, putting increasing pressure on the costs of coking enterprises. 2. With coal prices rising sharply, the coking industry is currently facing severe losses across the board, and these losses are continuing to increase; the distribution of profits within the black metal industry chain is unreasonable. 3. Coking enterprises are currently seeing good sales of coke with no inventory left; customers are pressing for deliveries. Clients in certain regions, ports, and steel mills have already accepted the fourth round of price increases. 4. Steel prices have remained stable recently, and steel mills will not voluntarily reduce production; it is expected that steel production will remain at a high level in the coming period, resulting in continued strong demand for coke. Taking all the above factors into account, the participating coking enterprises reached the following consensus: 1. In response to the government’s call to curb excessive competition, the entire industry will reduce production by 30%, adhering to the principle of producing less when there are losses, and avoiding sales or credit sales in cases of losses. 2. As of 0:00 on November 10, the price for wet quenching of coke for steel plant customers will be increased by 50 yuan per ton, the price for dry quenching of coke by 55 yuan per ton, the price for wet quenching of coke with top loading by 70 yuan per ton, and the price for dry quenching of coke with top loading by 75 yuan per ton.