The boss said that the economic crisis in the coking industry is set to become more apparent again in April this year, and people are even afraid to purchase more coal.

It seems that the coking industry is showing some signs of recovery; let’s stay optimistic! !

To run a business, one needs not only confidence but also an attitude of constant vigilance and staying on edge at all times; it is pressure that provides the motivation. This is the same as what * said about strategically dismissing the enemy while giving tactical attention to them; therefore, even though it can be analyzed that the situation in the coking industry will become severe after April, one must not lose confidence. Guided by that confidence, preventive measures should be taken early to face the challenges head-on, so as to ensure the survival of the enterprise

Aren’t the news reports saying that the five major power companies plan to buy coal from abroad in order to counter high prices of coal produced domestically? Is the coal price also too high for coking?

Coal prices are indeed a bit high at the moment. It’s hard to say whether a real crisis will arise in April; as long as domestic demand is stimulated, the industry can maintain its current situation. . The most important thing is that the coal stored in the coal yard is sufficient to meet the needs of normal production for at least one month. Just my humble opinion.

It seems like you’re overthinking things, buddy. Is all the coal you use obtained through purchases? As a coking plant that relies on resources, one usually tries to purchase as much coal as possible for future use. Is your facility located in Dong’a?

The coking industry follows the steel industry; the steel industry has already begun to recover. Several strategies can be used to forecast the future of the steel market: 1. Interest rate cuts: Chinese banks hold large amounts of money that isn’t being utilized, a situation that foreign banks envy greatly. However, this money, when kept in banks, does not contribute to societal development. The so-called 4 trillion yuan aimed at boosting domestic demand actually involves using relevant policies to get that idle money in banks to circulate again. (I remember reading an article a few days ago that stated the total amount of deposits in China in 2008 was 4.5 trillion yuan.) This might seem unrelated to us, but when this money is put into circulation, it turns into consumer spending, and such spending stimulates various industries in society; in particular, the basic industries benefit the most from this. 2. Adjusting real estate policies: Last year, the lending policies regarding second and third homes were just adjusted in an attempt to curb the practice of hoarding properties for resale; however, those policies were relaxed again after a few months. Those who have the means should buy more homes, and if more homes are bought, more construction will take place. Weren’t the poor conditions in the steel market last year largely due to the impact of the real estate market? Although construction activity won’t be as brisk as it was before August last year after these policy adjustments, there will still be some improvement, and as a result, the demand for building materials will increase, which has a direct impact on the steel industry. 3. Regarding the automotive industry: According to reports from a few days ago, China’s automobile production has surpassed that of the United States, making it the world’s largest automobile producer. A fuel tax policy has been officially implemented, and measures have been taken to gradually eliminate tolls on national highways. Additionally, zero-downpayment options and interest-free loans for car purchases are encouraging consumers to buy vehicles. The automotive industry serves as a support for the steel industry; therefore, adjustments made by the automotive industry in an economic downturn undoubtedly act as a stimulus for the steel industry as well. 4. Shipbuilding industry: Last year, China overtook Japan to become the world’s second-largest manufacturer of commercial ships. Currently, China accounts for 24% of the total global ship orders, which ensures long-term and relatively stable demand for marine steel. 5. Large-scale infrastructure projects: **The large road, railway, and aerospace projects that are currently planned or under construction have not been significantly affected by the economic crisis; they continue to progress as planned. The construction of these projects involves a huge amount of steel consumption. And **encouraging some large enterprises and organizations to invest in large-scale projects is also a means of boosting domestic demand. 6. **Investing in public infrastructure development: After years of accumulation, we now have a substantial amount of available funds. This is an ideal opportunity to invest in public infrastructure development, achieving two goals at once.** All of the above are factors that have a positive impact on steel consumption. Additionally, we know that the sharp fluctuations in China’s steel industry last year were largely due to issues related to raw materials. The failure of the iron ore price negotiations in 2008 forced domestic producers to bear prices that were about 70% higher than those in 2007. This led to rising steel prices and a large accumulation of iron ore at ports; at its peak, the amount of iron ore stored at ports reached nearly 90 million tons, which is more than one-third of China’s annual iron ore consumption. When the crisis struck, iron ore prices dropped sharply, but China’s steel industry was unable to avoid the consequences and continued to suffer losses due to the high prices of iron ore throughout April. Since the failure of the iron ore price negotiations in 2008, China’s steel industry has taken corresponding actions. First, at the end of April last year, China Steel Group carried out a hostile takeover of Western Iron Ore Company in Australia; more recently, Chalco made a significant investment of $19.5 billion in Rio Tinto. Without discussing the economic benefits of these two investments, it is clear that they have enabled China to gain a certain advantage in the international distribution of iron ore resources and to take greater control over this process. Furthermore, having learned from the painful lessons of 2008, the China Iron and Steel Association should do a better job in negotiating prices for iron ore in the future; at the same time, we should also learn to control the levels of iron ore stockpiling. Coke, another key raw material for steel production, whose price is not determined by our coking industry; we are largely constrained by coal prices. The market-driven pricing of coal leads to rising costs for coking coal during periods of strong demand in the steel market. As a result, our coking industry is forced to raise the price of coke on one hand, and to stock up large quantities of coking coal on the other, out of fear that coal suppliers might change their behavior and leave us without the coal needed for production. When a crisis strikes, despite the downturn in the steel industry, we still have to use expensive coal to keep things running, silently bearing the resulting losses. However, the crisis also brought us some opportunities. The fact that representatives from the coal industry and the coking industry sat down together to negotiate for the first time at the end of last year was a good opportunity for us, indicating that cooperation between our two industries is moving toward a more rational and communicative approach. Additionally, some influential figures argue that market-based pricing of coal prices is unreasonable at the moment; as a basic energy source, more **guidelines** are needed to ensure stable economic development. This might be what some people hope for, but after the crisis, supervision of these industries will surely be strengthened, which should represent a positive turn of affairs for us. In my opinion, the impact of the economic crisis on our country will not be as prolonged as in the cases mentioned for comparison; we will soon return to stable development. The steel industry, which serves as a foundation for the economy, will recover quickly as well, and accordingly, our coking industry will surely experience another period of prosperity. As for the competition with the steel and coal industries, it has been going on all along; it is not something brought about by the economic crisis. On the contrary, this crisis may make the relationship between these three industries closer and more harmonious.

Steel prices in the southwest region have dropped again, while coke prices have risen slightly. Coal companies are waiting to see what happens; the coal washing enterprises around Panzhihua have not yet taken any action. The price of refined coal has seen a slight increase. The conflict between the coking industry and the increasingly scarce coking coal resources will become more pronounced. As things move forward, we should have confidence.

Although the situation this year is severe, we still need to maintain an optimistic attitude; the stock market has been slowly recovering these past few days. At our factory, we can’t see any significant impact for now. The overall economic situation is likely to become apparent around April.

Whether it’s production restrictions or a shortage of coal, it’s all done to address the current difficult situation. We must all maintain firm confidence in coking and not waver.

The market for raw coal is not very stable either, with prices often fluctuating. This year, the impact of the economic crisis is expected to become apparent gradually in April. However, I believe that the volume of raw coal purchased does not depend solely on the extent of the economic crisis; rather, it depends on market demand and price changes.

Our company began to increase production in December last year and reached full capacity, and has maintained that level ever since, with strong sales and production. Recently, many companies have contacted us to purchase coke, so the situation is unlikely to get much worse. We should have confidence.

Although the real estate sector has led to a **decrease** in demand for steel, substantial investment in infrastructure is undoubtedly a source of confidence for the steel industry. The coking industry, as a result, is also unlikely to fare poorly. This is a crucial factor in determining whether a company can succeed in this competitive environment; in my opinion, it represents a great opportunity for corporate development. As the saying goes, loss in one place may bring fortune in another. As long as companies make the necessary adjustments based on market conditions, improve quality and service, and get through this tough period, they will surely be able to grow stronger and better!

Our coking plant operates in tandem with iron production; as long as the steel industry does well, I believe coke production will follow suit! Our coke ovens have been operating at full capacity almost all the time!