The potential pressure in the coking industry has not been solved

Jin Qiang, chairman of the China Coking Industry Association, said on September 20 at the China Iron and Steel Raw Fuel Market Summit that although a number of outdated small coke ovens have been eliminated this year, the increase in new coke oven capacity still exceeds the elimination of outdated small aircraft coke. The amount of capacity reduction. Therefore, the coking industry still faces potential pressures of oversupply in the future.

According to reports, from January to August, the country’s output of coke increased by 20.1% year-on-year, which was 3.8 percentage points higher than the national increase in pig iron production. Among them, the increase in coke production in July has dropped to 16.9%, while the increase in pig iron production in July fell to 13.2%, but the increase in coke is still 3.7 percentage points higher.

Huang Jingan said that according to forecast, the total crude steel production this year is expected to reach 480 million tons, which is an increase of about 14% from the previous year. Therefore, the market risk of coke has become apparent, and the coking industry must adapt to the market demand in order to achieve production and sales, and control the excessive growth of coke production. “Since the second half of last year, coke prices have been adjusted several times, and the economic benefits of coking enterprises have increased. However, a number of construction projects for coke ovens that were temporarily suspended have begun to start construction, together with a batch of iron and steel co-operative enterprises supporting coke ovens and large-scale coal group industrial chain extensions. The construction of coke ovens has accelerated the increase of new production capacity, which has increased the market risk of the coking industry, said Huang Jingan.

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