According to the report released by CCIA (China Coking Industry Association), China's coke demand is anticipated to continue shrinking in H2 and the overall coke demand may stand at 410 million t for this year, up 6% year over year.
From January to June of this year, the sales revenue for Chinas registered coking makers had risen by 36.23% as compared to the same period of last year while the net profits were down 5.57%. Consequently, the coking enterprises' profitability also had decreased from 2.72% in the last year to 2.38%.
It is reported that the price inversion between the coking coal and coke is the main reason, which has compressed the profitability substantially. As for the market trend in H2, the CCIA pointed that China's steel industry demand is estimated to continue softening except for the construction steel demand. Thereby, the coke production may also inch down gradually in the second half of current year.