China's coke industry looks like warmer

In December 2010, the export volume of China's coke and semi-coke increased by 513.5% compared with the same period of 2009. Industry sources said that although the export situation of coke has picked up, it will be difficult to return to the level before the financial crisis. The “heavy head” should also be sold domestically.
According to data released by the General Administration of Customs on January 10, in December 2010, China exported 350,000 tons of coke and semi-coke, and cumulative exports from January to December 2010 totaled 3.35 million tons, a sharp increase from the same period in 2009. 513.5%. At the beginning of the new year, the General Administration of Customs' data provided a breeze for the coke industry, but companies said that the days are still struggling and that although exports have picked up, they are only paying for the excess production capacity. Industry insiders predict that coke exports may continue to grow in 2011, but not enough to ease business pressure.
The company's hard-won days are “no good news,” Yin Xufeng, head of the Xuyang Coking Group, told reporters bluntly. “The increase in exports has not brought any profit to the company, and the export quota for coke has been reduced this year, and companies are still very Passive situation." For the 2011 export forecast, Yin Xiaofeng said: "Should not be much improved, because the global financial situation is still not optimistic, the domestic coke market is facing excess capacity, the global demand is far less than before In addition, the state will also increasingly restrict the development of traditional energy sources. Companies are worried about the prospects for development and can only hope that the export situation will be getting better and better." At the same time, Yin Yinfeng believes that in the transformation of China's economic growth mode, the steel industry With the coke industry's capacity growth rate will slow down, in the context of suppressed coke exports, coking companies have to consider diversified development or conversion, and seek new growth points.
The amazing growth was originally a small base. Associated metal network analyst Mu Wenxin reminded that in the face of such exciting export data, don't be too happy. The export growth in 2010 was surprisingly low because of the previous growth. In general, there are two main reasons for the sharp decline in coal exports in the past two years. First, after experiencing the global financial crisis in 2008, overseas coal demand has plummeted. Second, according to relevant policy requirements, China has adjusted its coal export strategy. , reduce the export of coal resources. After entering 2010, the global economy has gradually emerged from the shadow of the financial crisis, making China's coke exports recover, but it is still less than 1/5 of the level before the financial crisis.
Judging from the situation in previous years, China is a major producer and exporter of coke. Before 2008, the export volume remained at the level of 15 million to 17 million tons. From the end of 2008, China’s coke exports have decreased significantly, and exports in 2009 have declined. To 600,000 tons, in 2010 coke exports only 3 million tons. Because after the outbreak of the global financial crisis in 2008, international demand has shrunk dramatically. In addition, China's coke resources have also been strategically protected in recent years. It is reported that China began to impose a 5% export tariff on coke at the end of 2006, and has since been subject to a number of tariff adjustments until the temporary coke export tax rate of August 20, 2008. From 25% further to 40%, an export quota system is also implemented. At the same time, major coke-importing countries such as the United States, Europe, and Japan have gradually withdrawn from the international coke market in recent years, while major coke-importing countries such as Brazil and India have continuously increased their coke production capacity, and thus their dependence on coke in China. Further decline.
Due to multiple reasons, China's coke exports have dropped significantly in the past two years. Mu Wenxin said that from the data, China's coke export market has recovered in 2010, but the export volume remains at a relatively low level, and it is expected that there will be hardly any significant improvement in 2011. "513.5%, this figure may seem huge, in fact, it will not have a great impact on domestic coke production companies, but also can not have any substantial impact on the cost of steel, at most a concept of speculation." Mu Wenxin said.
Turning to domestic sales to find a way The interviewed industry experts generally believe that although the coke export situation has recovered, but it is difficult to return to the level before the financial crisis, "heavy head" should also fall within the domestic market. According to Huang Jingan, president of the China Coking Industry Association, China will no longer be a major coke exporter in the future. “Current coke exports are subject to a 40% tariff, and export taxation will lead to a reduction in the price advantage of coke in the international market. Together with China's energy-saving and emission reduction structural adjustment pressures, the capacity growth of the steel industry and the coke industry will slow down. The coke must first Satisfy domestic demand," said Huang Jingan.
Lange Steel analyst said that from the coke industry's development point of view, since the reform and opening up 30 years, China's coke production has always been very large, accounting for 50% of global coke production. The great vitality of the coke industry has led to the state's control measures to control total production from the previous tax rebate of 15% to the implementation of the quota licensing system to the additional 40% tariff. The coke is mainly used as the main fuel in the steelmaking process of iron and steel companies. In the international community, the coke of iron and steel companies is basically self-produced and sold, and the scale of coke trading is relatively small. However, the self-sufficiency rate of coke in China's iron and steel enterprises is only about 30%. About 70% of the coke demand in the iron and steel industry must be solved through market channels.
At present, China's coke industry is in an overall overcapacity. At the same time, due to the rising price of upstream coal and the continued suppression of the price of coke finished products by downstream iron and steel companies in order to save costs, the profit margin of the coke industry is continuously shrinking. “China now has more than 800 coking companies of all sizes. At present, there is an overall surplus of coke design capacity. If we do not eliminate outdated production capacity and implement mergers and acquisitions, coking companies will not be better off,” said Yan.

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