According to Mr Huang Jingan chairman of China Coking Industry Association said recently at 2008 Asia-Pacific Coal Market Summit on July 18th that uncertain factors will increase in coke market in the second half of this year and coke producers should raise prices cautiously on the basis of steelmakers' acceptance.

    Mr Huang warned against blind production expansion and urged producers to pay more attention to technology innovation and market exploitation.

    CCIA statistics show China produced some 335.54 million tonnes of coke in 2007, approximately 60% of the world's total output. In the meanwhile the country's apparent coke consumption gained 13.81% year on year to 320.24 million tonnes. Apparent consumption growth was 1.09% higher than output growth, indicating increasing demand and tight supply. Constructions of over 3000 cubic meter blast furnaces further require more high coke quality.

    Robust demand also triggered exports growth. Though export duty had been raised to 15%, China's coke exports still amounted to 15.3 million tonnes in 2007 up by 800,000 tonnes or 5.52% from a year earlier. Export price climbed by 44.13% to USD 199.61 per tonne from USD 138.49 per tonne.

    CCIA's coke price index jumped 26.92% from 225.35 point in the year beginning to 286.02 point in the year end. Average price increased by CNY 311 per tonne to CNY 1453 per tonne.

    Mr Huang said that out scant supply, difficult transportation and rising price of coking coal further pushed up coke price. He said that the industry still face some uncertain factors. Short supply and increasing price of coking coal squeeze coke market along with rising costs and fluctuating operation in steel market.

    Comprehensive purchase cost hit RMB837.58/ton in December of 2007 and has surpassed CNY 1000 per tonne since this year. Price for coking coal from Canada, New Zealand, Russia, Australia and so on has also reached USD 120 per tonne to USD 130 per tonne.