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Short-term coke "2 bullied" situation die hard - Cationic Polyacrylamide - SAP Construction Industr by gfgegnnm hhbnmkl





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Short-term coke "2 bullied" situation die hard - Cationic Polyacrylamide - SAP Construction Industr by
Article Posted: 06/30/2011
Article Views: 76
Articles Written: 1281
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Short-term coke "2 bullied" situation die hard - Cationic Polyacrylamide - SAP Construction Industr


 
Business,Business News,Business Opportunities
SINGAPORE Fla. since the end of 2009 the price of coke rise into the channel, but caught between the upstream and downstream of the most difficult survival coke enterprises would find in the first half losses. The industry believes that the domestic coke industry overcapacity, serious, short-term "two bullied" situation hard to change, either up or limit production guidance prices are just only allow companies to reduce loss levels, and unable to improve the industry status quo.

Industry outlook is not optimistic Rebound in the steel industry's lead, coke prices continued to rise from the end of last year, according to wind statistics, compared to last year, this year the overall profitability of the coking industry rebounded, gross profit margin of -2.07% from the beginning of last year increased to 3.74% in February this year, the number of loss-making enterprises from more than 300 early last year fell to 220 earlier this year over.

However, due to upstream coal prices rise more, the days of coke enterprises are still uncomfortable. The first quarter of this year, there are still three coke listed company fails to shake off a loss situation, but the market from the second quarter of coke run view, the first half of the losses will continue. Aetna Group and * ST mountains were notice in the first half continued loss of focus. * ST Shan Jiao said that the reasons for the loss, "subject to market and other factors."

International Industries believes that changes in demand and supply of coke, decided to reorganize the country of its main income of most of the coal-based company, completion of the restructuring, the international industry will no longer directly owned operating coal mines and coking plants the original.

Company said in the past few years, the coke market is a seller's Xinjiang region, product pricing power concentrated in the coke coke producers, higher prices, the company has achieved high returns. But in recent years, the industry's high returns attracted a large number of investors involved in the field of coke, has formed annual production capacity of 4 million tons of coke, the coke market in Xinjiang great pressure of competition, prices of coal-based products from 2008 to 2200 yuan / ton, down to the present 1,150 yuan / ton, and the price is not yet noticeable signs of stabilization and recovery.

"2 be bullied," the situation is hard to change

Coking Industry Association in limiting the production of quotations, driven by the domestic coke market in May of local urban renewal of the previous trend of rising slightly, but the operation of the market weakness, the situation is very optimistic about the deal, industry sources, mainly due to the downstream steel market continued weakness.

Recently some varieties of steel prices continue downward, while the higher raw material cost pressures, steel generally rise in coke 100 not accept, some accept only 50 yuan / ton of gains. Meanwhile, the steel significantly reduced the number of purchases of coke, more rely on inventory to maintain production.

And coke company also faces cost pressure upstream. According to the joint metal mesh coal channel analysts, due to price increases of more than coke, coking coal, coking plant, after price increases but lower profits. This year in January, imports of domestic coking coal prices reached 1,530 yuan / ton, lead the domestic coking coal prices in Shanxi coke price increases from 2 to beginning of 100-180 yuan / ton.

Not overstating the cost of coking coal prices, coking coal plant also had to face the source of tension, coking coal supply shortage. According to media reports, in April the actual amount of coke in Shanxi Coking Group can only reach about 60% of requirements.

In this case, the coke plant for the profitability of their consideration, would rather cut has little to cut prices move.

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