The coke industry's risk is further gathering as the coal price jumps and the coke production capacity expands gradually.

   The coal price had a big rise last week, further raising the cost of coke enterprises and squeezing their profit margin.

   The current coke price is high enough to force small steel plants to stop production, and only some large and midsize iron and steel enterprises in East China and the central southern are less affected by the price hike of suppliers because of their sufficient stock.

   A report of Umetal.com shows that as a response to the price hiking letter of coal mines, coking plants and iron and steel enterprises in Shanxi, Hebei and Shandong have adjusted up the purchasing price of coke by 200 yuan/ton. The delivery purchasing price of high-quality coking coal in Shanxi has topped 1,800 yuan/ton and that of coking coal in Shandong and Jiangsu will break 1,600 yuan/ton. The market price of some types of coal in Shanxi and eastern China provinces will be less than the purchasing price, mainly because limited coal mines are put into normal operation in Shanxi, and the coal output has become unable to fully satisfy the market demand. Domesitc price of both coking coal and power coal are approaching to the international level.

   After price hike in May, coke price in all places of China remained stable last week, and the possibility of further hike can not be ruled out in the future though the resistance for price hike is increasing, especially when China's coke production capacity is in excess and a batch of small iron and steel plants are closed down in Hebei. However, even if the coke price peaks off, the drop will not be much big due to soaring price on the international coke market.