It is reported that the Shanxi Coking Industry Association has proposed reductions in coke production in November in Shanxi Province, China. Accordingly, local coking enterprises which contribute to urban coal gas supplies will reduce their coke production by 30% while all other coke producers will cut their outputs by 50%.
The association stated that, as the fourth quarter is the slack season for downstream industries and also given the tight monetary policy in China, coking producers should cut production instead of lowering prices.
At the current time, in the context of the sluggish economy and weak end-user demand, steel producers in China are under pressure to reduce their purchase prices for coke in order to bring down their production costs