Coke is a kind of important industrial raw materials whose quantity demanded is closely related to the economic situation. The demand for coke rises with the development of economy, which enhances the price of coke and vice versa. In 2015, China's GDP experienced a slow increase with the growth of 6.9% YOY. With the proceeding of economic structural adjustment in China, coke industry will be faced with huge challenges. In 2015, the construction industry was closely related to the steel industry, of which the contribution to China's GDP fell from 0.71% to 0.42%. The main reasons were as follows. The generally high inventory of the real estate industry resulted in the decline of the operating rate. Moreover, it was difficult for the favorable conditions provided by the infrastructure to play a significant role in supporting the market.
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In 2015, the output volume of coke in China was 447.78 million tons with an increase of over 6% YOY. In terms of the consumption structure, 85% of the coke serves for the production of iron & steel industry. In terms of the distribution of the output volume of coke in China, the regional distribution of coke enterprises is unbalanced. The production of coke mainly focuses on North China and Northwest China with rich coking coal resources. Shanxi Province with the largest coke output volume constantly accounts for 20% of the national one.
The demand for coke mainly comes from the production of iron & steel industry. Therefore, the consumption regions of coke mainly focus on the provinces with concentrated iron & steel enterprises. The production capacity of pig iron in North China, Eastern China and their surrounding areas accounts for 64% of the national one. Their consumption of coke accounts for 66% of the national one, and Hebei Province consumes the largest quantity of coke in China. With the steady development of iron & steel industry, the demand for coke correspondingly increased at a high speed from 2011 to 2013. The demand for coke increased from 336.87 million tons in 2010 to 458,518,700 tons in 2013 with an increase of 36.11% YOY. The slump of the real estate market led to the decline of the output volume and demand volume of coke in 2014 and 2015. The decline of new real estate projects resulted in that of demand for iron & steel. The growth rate of production volume of iron & steel reached 4.08% in 2014 which was nearly half of 9.86% in 2013. The output volume of iron & steel declined in 2015, which led to the decline of output and sales volume of coke.
Under the policies concerning de-capacity issued by Chinese government, some small and medium-sized coke enterprises are forced to merge or shut down. In terms of production capacity, Kailuan Energy Chemical Co., Ltd. is one of the leading enterprises, of which the production capacity reaches 8 million tons. However, the production capacity of other small-sized enterprises is usually less than 1 million tons.
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China Coke Industry Overview, 2011-2020 - New Market Report
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Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001