China Daily reported that Yanzhou Coal Mining of China has cut coke prices for the fourth time this year by as much as 10%.
Mr Zhang Zhibin an analyst with SCI International, a commodity market consultancy said that “The supply of coke outstrips demand. Worse still, the iron and steel coking industry is operating at low profits or even at a loss. It was inevitable that Yanzhou would cut its prices.”
According to SCI International, Yanzhou's coke prices in July have fallen by CNY 70 per ton to CNY 85 per ton. The biggest plunge happened in April by CNY 130 per ton followed by another two drops of CNY 60 and CNY 30 per ton in May and June. The price now stands at CNY 800 per ton to CNY 885 per ton.
Mr Chen Zhexiang an analyst with the private think tank Anbound said that the price cutting is bound to have a negative impact on the overall industry. Judging from the current pessimism prevailing in the market, the industry is bracing for a prolonged period of sluggish performance.
– Sourced
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