Archive for October 13th, 2008

Market report October 12

Monday, October 13th, 2008

Green coke

At the end of September, the domestic Green coke inventory level was very high, and many refineries had “before Vacation promotion”, in order to sell more products. But it didn`t work out, and the downstream companies are now waiting to see how far this price cutting can go. The first 12 days of October therefore have seen prices continue to tumble as inventory levels have risen.

From 26th Sept to 10th Oct:

Low Sulphur Green Coke:

1#A has dropped 450RMB/Ton to 2600-2700RMB/Ton;

1#B dropped 420-780RMB/Ton to 2050-2600RMB/Ton.

Moderate sulphur green coke:

2#-3#A North of China and Shandong dropped 200RMB/Ton to 2200-2600RMB/Ton;

along Yangzi river region prices dropped 250-270RMB/Ton to 2000-2220RMB/Ton;

Shandong local refinery lowered down the most, dropping 400RMB to 1600-2300rmb/Ton;

3#B dropped 50-100RMB/Ton to 1850-2100RMB/Ton.

High sulphur green coke price dropped 550-200 RMB/Ton to 1050-1650RMB/Ton in last two weeks.

Calcined coke

At present, those Calciners who cut back during Olympic Games have increased their output, requiring more green coke, but because of the situation in the domestic aluminum market, there is still pressure on Carbon products market price.

Due to the price dropping for green coke, low sulphur calcined coke price went down as well. The price of Low sulphur calcined coke dropped 800-900RMB/Ton in last two weeks to 3900-4100RMB/Ton. Many factories started to cut back. Dongbei Linhaiziguang Carbon Factory stopped producing.

Moderate Sulphur coke price slipped a bit to 3150-3250RMB/Ton from 3150-3350RMB/Ton;

High sulphur calcined coke dropped 200-250RMB/Ton to 2450-2650RMB/Ton.

Anode

In line with the falling demand of aluminum smelters, in the last two weeks anode prices dropped 100RMB/Ton 4300-4500RMB/Ton. Due to the aluminum market weakness, the market demand of anode is decreasing while the inventory level is rising. Some factories have now stopped producing, such as Hengyu Carbon and Xinghua Carbon. Qingyang Yellow River Carbon, Huihao shiye and Changhong Carbon cut back by varying amounts, as have Shandong Zibo Lianxin, Fengyuan Carbon, Qianhao Carbon and Hongchang Carbon.

If you would like more information about the Calcining market in China, please feel free to contact us.

“Black China” - October Report now available

Monday, October 13th, 2008

Watch out for your copy of the latest Black China Report, which was published today.

This month’s report includes a special section which looks at the Chinese coal industry, as well as the Chinese’ Government’s strategy for urbanisation.

In the current market turmoil around the world, all eyes are watching to see what the Chinese Government will do. Will it protect its foreign reserves, estimated at more than US$2 trillion, by continuing to prop up the US Banks. Remember it was China that bought many of the bonds that were issued to cover Freddie Mac and Fannie Mae, as well as its investments in several other US banking companies. Or will China use its massive reserves to pick up bargains around the globe. With its huge appetite for raw materials, grains, energy and other scarce resources, will China act now to lock in assets for its future?

The answer lies ahead of us, but here at AZ China, we will be watching and reporting as events unfold.

We will post news items as they come to hand.

Not a subscriber to the Black China report? Contact us at blackchina@az-china.com to find out more about becoming a subscriber.