The plants will extend the coking times to reduce or stop the purchase of expensive coking coal due to reducing capacity utilization and production costs. In addition, coke enterprises will give priority to customers who accept the increase in coke price.
In particular, Shanxi Coking Coal Group in Shanxi province and Inner Mongolia-based Yangdong Coal and Chemical Group have announced that they will raise coke prices starting from March 7.
According to SMM data, China increased its coke production by 8.3% annually to 39 million tons in December 2022. Thus, production increased by 4.3% compared to the previous month.
At the end of 2022, the Chinese government revised import duties on coking coal and thermal coal to support domestic producers. As of April 1, 2023, the import tax rate for coking coal will be 3% and for electric coal will be 6%. At the same time, zero import duty for coke will also be maintained this year. Imports to the PRC may increase this year, as production is expected to increase in Indonesia and other Southeast Asian countries.