WEEKLY: Chinese coke plants' coke output slides on squeezed profits

Total metallurgical coke output at the 230 Chinese independent coking plants sampled in Mysteel's regular survey slid by 4,200 tonnes/day on week to average 530,400 t/d during December 5-11, ending a three-week streak of production increases. Survey respondents attributed the decline to shrinking profit margins, which prompted more coke producers to scale back their production.

This week, some coke producers encountered more financial pressure as the new bout of Yuan 50-55/tonne ($6.9-7.6/t) coke price cuts demanded by leading mills materialized across the country on Monday, as reported. Although the declining coking coal prices helped secure coke producers' profits in recent weeks, the further coke price reduction again eroded the profit margins. Mysteel's other