Coke prices soaring why companies are not happy

Since the beginning of this year, coke prices at home and abroad have risen again after last year's sharp rise. In just over three months, the ex-factory price has increased from 1,400 to 1,800 yuan/ton at the end of 2007 to 1800 to 2,200 yuan/ton, an increase of nearly 30%, and an average monthly increase of more than 100 yuan/ton. In principle, coke prices have risen sharply, and coke-producing companies should earn enough money to laugh. However, in the face of interviews with reporters, many charcoal enterprises shouted "small profits," and some even declared that they had "lost profits."
"Coke ex-factory price is 2150 ~ 2200 yuan / ton, compared with the end of last year rose 500 yuan / ton, sales are very smooth, the company has almost no inventory." Shanxi Changzhi Coking Co., Ltd. Office Director Wan Liping in an interview with reporters. However, when reporters asked whether the company’s profit increased synchronously with the rise in coke prices, Wan Liping spoke twice in a row, “No!” According to him, although the price of coke rose, the price of coking coal also rose sharply. Currently, coking coal To the factory price of more than 1,000 yuan / ton, compared with the end of last year rose 250 yuan / ton, coupled with the increase in labor costs and sewage charges, tons of coke gross profit is only about 200 yuan, did not increase significantly.
Shaanxi Shaanxi Coke Group is the second largest coking enterprise in Shaanxi Province and currently has 730,000 tons/year of coke production capacity. After the 350,000 tons/year coke production line under construction is put into operation in June this year, it will increase its coke production capacity to 1.08 million tons. /year. The relevant person in charge of the company told the reporter: “Don’t look at the price of coke is skyrocketing, but the profit per ton of coke is only 100 yuan.” Currently, the ex-factory price of coke for Shaanjiao Co. is 1950~2000 yuan/ton, which is higher than that at the end of last year. 400 yuan/ton. But this year, not only Shanxi produces high-quality coking coal, but even Shaanxi's Hancheng's lean coal production price is also above 1200 yuan/ton. The price of high-sulfur bituminous coal in Huangling, Shaanxi Province also rose by 300% compared with the end of last year. RMB/ton, only the increase in coal price has increased the cost of coke by RMB 400/ton. Together with the increase in transportation, environmental protection costs, and labor costs, the comprehensive cost of coke increased by RMB 500/ton, which not only completely offset the coke. The gains brought by the price increase also “eat” more than 100 yuan of profit.
However, these two companies are fortunate enough to have at least some profit. Guizhou Huaneng Coking Gas Co., Ltd. incurred a loss in this wave of coke prices soaring.
Dong Dongqiang, Marketing Manager of Guizhou Huaneng Coking & Gas Co., Ltd., reluctantly stated: “Our current coke price is 1,800 yuan/ton, and raw coal fine coal washing has reached 1,500 yuan/ton, and 1 ton of coke is only a raw material cost. Up to more than 2,000 yuan, plus all other costs, the production of coke not only does not make money, but to pay 200-300 yuan per ton."
Zhang Dongqiang said that since the beginning of this year, due to the tight railway transportation, the original coking coal and coke transported by rail can only be transported by road, not only greatly increasing the transportation costs of enterprises, but also restraining the rise in the price of coke products and making Guizhou coke prices Generally lower than the rest of the country 100 ~ 200 yuan / ton. "If the company's crude benzene refining, industrial naphthalene, tar, ammonium sulfate and other chemical products can earn nearly a million yuan per month, relying on coke alone, the company may not have long been able to support it."
Many coking enterprises such as Inner Mongolia Qinghua Coking Group Co., Ltd., Shanxi Coking Group Co., Ltd., and Shaanxi Black Cat Coking Co., Ltd. all reflected that the increase rate of coke prices is far lower than that of coking coal prices. The coke products themselves do not make money. What really makes money is coking by-products. The relevant person in charge of Inner Mongolia Qinghua Group asserts that in the future, the competition of enterprises is no longer the size of coke, but the number of coke by-products and the length of the industrial chain, and those enterprises that are only in focus, and the rising coal prices and environmental protection With the constant increase in costs, there is only one dead end. "In this wave of coke prices soaring prices, coke itself did not bring benefits to the company, but the production of 200,000 tons/year of coke oven gas to methanol project and other coking products put into production in the end of September last year brought great profits to the company. Return," said the person in charge.
The president of the China Coking Industry Association warned that the coking enterprises were affected by factors such as the domestic coal industry and the 50-year flood disaster in Australia that caused major international suppliers of coking coal such as BHP Billiton to significantly reduce coking coal exports. The supply of coking coal will continue to be tightened, while coke products may be resisted by the giants of the steel industry. The price is difficult to increase simultaneously and the profits of coke enterprises will further shrink. Only by recovering coking by-products and extending the industrial chain of coking products can companies stand undefeated.

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