The market has been confused by the prices of coke in Shanxi as producers continued to significantly cut their ex-work prices on a quiet transaction. The prices of the second-grade metallurgical coke were offered at 2,400 to 2,700 yuan per ton by most plants, with 2,200 to 2,300 yuan per ton as the lowest. Major coking plants in Shanxi decreased the price of coke by 100 yuan per ton in September, provoking dissatisfaction among steelmakers.

    Coke producers are likely to further cut production on an obviously rising stock due to the absence of demand from the steel industry. The situation will be worse with 10 million tons of new capacity ready to be launched in the second of this year or the first half of next year in Hebei.

    The export duty of coke has risen to 40 percent over the past two years, sending the price of coke to 3,000 yuan per ton in the middle of the year from 2,000 yuan plus per ton early this year. The price experienced a massive drop later due to foreign customers' decreased buying on rising costs and the delayed recovery of normal operations among the domestic mills during the post-Olympics economy.

    China should launch coke futures as soon as possible as a market-oriented mean to make the coke industry to grow steadily, experts believe.