The number of coking enterprises in Shandong will be halved

As coke prices continue to fall, coking companies in Shandong, a province with large coke production, have lost 80% of their coking capacity, leaving a lot of capacity unused. In this situation, following Shanxi, Shandong also accelerated the merger and reorganization of coking companies.

The Economic and Information Commission of Shandong Province recently released the “Guiding Opinions on Accelerating the Transformation and Upgrade of Coking Enterprises”, encouraging independent coking enterprises to carry out cross-industry restructuring of upstream and downstream coal, steel, chemical and other companies, and in particular to have been included in the national announcement management. Forty-one coking companies will optimize and reorganize. By 2016, the number of entrepreneurs will be controlled within 20 households, the coke production capacity will be controlled within 40 million tons, and the per-capital production capacity of coking enterprises will be increased from 1.06 million tons to 2 million tons. .

As of the end of 2011, there were 58 coking enterprises above designated size in Shandong Province with a production capacity of 62 million tons, ranking third in the country. There are 41 companies listed in the national announcement management with a production capacity of 50 million tons.

While the coking industry continues to grow and develop, overcapacity and low industrial concentration have also become two major problems that China's coking industry needs to solve urgently. In 2011, the output of coke in Shandong Province was 45 million tons. Compared with the market demand in the province, coke production capacity was over 55%, and some companies were in semi-load production. According to the planning target of 50 million tons of steel production capacity in Shandong Province at the end of the “Twelfth Five-year Plan” period, coke demand will be further reduced to about 25 million tons. According to the current coke capacity, the excess coke production capacity will reach 60% by that time.

Data show that on September 19, secondary coke in Shanxi area was 1100~1200 yuan/ton, and secondary coke in Shandong area was 1200~1230 yuan/ton. In January this year, the price of secondary coke in Shanxi was 1,790 yuan/ton, and in Shandong, it was 1920 yuan/ton. The price of coke in the two places has dropped by a maximum of 720 yuan per ton since the beginning of the year, a decrease of nearly 40%. In August, the loss of some coke enterprises even reached 250 yuan/ton.

Feng Tianjia, executive vice president of the Shandong Coking Industry Association and general manager of Shandong Coking Enterprise Group Industrial Co., Ltd., said that due to the sharp drop in coke prices, only 20% of companies in Shandong's entire coking industry are profitable, with a loss of 80%. “This guidance is issued by Shandong Province to promote the merger and reorganization of coking companies in the province and improve efficiency. The specific implementation plan is still under development and will be jointly promoted with the large-scale coking enterprises in the province.”

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