Analysis of the coking market in 2010.
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This post was last edited by Miao Shi on 2009-11-21 at 12:43. Analysis of the coking industry in 2010: (Excerpt from Coal Coking Network) On November 19, Huang Jinguang, president of the China Coking Industry Association, said at the “2009 Steel Industry Chain Strategic Development and Investment Summit” that, due to both overcapacity in the steel industry and a shortage of coking coal resources, the coking industry will continue to face the awkward situation of increased production without corresponding increases in revenue in 2010. Jin Gang pointed out that China’s crude steel production will reach a new high this year, and driven by this, China’s coke production is likely to exceed the historical peak of 2007 (335 million tons) to reach 340 million tons. In addition, the costs of products such as coal, electricity, oil, transportation, and iron ore remain high, putting pressure on coke market prices from both ends. Jin Gang pointed out that under such circumstances, the coke industry is likely to enter a new phase of \"reducing production and curbing output in order to overcome losses and difficulties.\" Jin Gang pointed out that although demand in the steel market is expected to remain above 500 million tons in 2010, driving demand for coke to around 330 million tons, affected by the factors mentioned above as well as the prominent imbalance between supply and demand, coke prices will continue to fluctuate at low levels, presenting a grim outlook. Is this the destiny of the coking industry? ； We should unite to find a way to break this economic cycle.
1# Master Miao: The situation remains severe at all times
The ongoing decline of the coke market is not solely due to demand constraints, but rather results from irrational and vicious competition within the industry; it will take a long time to change this situation. Otherwise, the coking industry will be completely destroyed!
It will not perish within the next twenty years; rather, over time only the fittest will survive, and the pace of corporate mergers will accelerate
To change this predicament, everyone needs to be rational. First, it involves **strengthening various measures to eliminate outdated production capacity, restricting the approval of new projects in accordance with policies, and controlling uncontrolled expansion of production capacity** ； The second approach is to rely on unity and healthy competition within the industry to achieve mutual benefit and a win-win outcome ； Third, strengthen the development of coking gas synthesis and deep processing of tar.
The depletion of coal will mark the end of coking! !
So the main problem still lies in the hands of those coal owners.
To overcome the awkward situation in the coking industry where production increases yet profits do not, we must take the initiative to reduce or limit production and force a drop in the price of coal resources; otherwise, the coking industry will have to undergo changes, even if it doesn’t go out of business. We need to achieve a situation where all parties can benefit.