China's Met Coke Output Increased 6 Percent in First Nine Months

China produced 354.36 million tonnes (MnT) of metallurgical coke this year from January till September, which's a year-on-year increase of 6.3% as compared to the corresponding period of last year.

During the same period, the country's output of raw coal, including both thermal and metallurgical, increased by 4.5% year-on-year to 2.7 billion tonnes, according to the latest Data compiled by the National Bureau of Statistics of China (NBS) published last Friday on October 18.

The growth in met coke output was chiefly a reflection of buoyant demand, as China's pig iron production also increased by 6.3% year-on-year over the first three quarters, reaching 612 MnT, as per the NBS data released last week.

However, the growth in met coke production over the nine months was slower than the 6.7% growth recorded over January-August, as in September, domestic coke production softened by 2% month-on-month to 39.2 MnT (though higher by 3.2% year-on-year), according to NBS.

The lower met coke output last month resulted from stringent air-pollution control measures implemented by authorities at many key coking bases. During late September-early October, most coke plants in North China were reportedly ordered to lengthen the coking process to reduce emissions and minimize air pollution during the National Day celebrations planned for October 1.

As for coal, the steady output growth resulted from the sustained ramp-up of production at newer, more efficient mines, amid firming demand for coal and lignite for power generation, metallurgy and construction materials.

In September, China's raw coal output grew by 2.6% month-on-month (4.4% year-on-year) to 324.1 MnT, according to NBS data. The coal output in September was 610,000 tonnes/day higher month-on-month at 10.8 MnT on average, another NBS report disclosed.

"The rise of coal output last month was mainly because of increasing thermal coal replenishment for the winter period," stated a Shanghai-based analyst. Also in September, utility providers in Northeast China began actively procuring coal for the cold months ahead.

Source: Mysteel Global