Rizhao Steel further cut coke purchase prices

Publish time: 16th July, 2015      Source: www.cnchemicals.com
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Rizhao Steel Holding Group Co., one leading Shandong-based coke producer, cut coke purchase price by 20 yuan/t from July 16, the second decline in a month after a 10 yuan/t cut on July 8.The company is now offering 780 yuan/t for Grade II met coke sourced inside the province and 800 yuan/t for products outside the province.Many other cash-tight steel mills may follow suit to further press down coke purchase prices to reduce losses, analysts said.China’s steel industry has had a torrid July to date, with prices for various products like hot-rolled coil and billet falling 6-8% since the start of the month.Prolonged loss in the steel sector has led to severe production cuts and increased furnace maintenance at steel mills, which also negatively impact coke demand .Data from industry portal China Coal Resource showed the ex-plant prices of Grade II met coke at Dong’e, Zibo and Tengzhou regions of Shandong stood at 780 yuan/t, 780 yuan/t and 760 yuan/t, respectively, as of July 15.