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Coke market in Shandong province, East China, is gloomy with falling price and plain transaction. Prevailing price of II grade metallurgical coke (metcoke) in Zibo city is set at CNY 1,650 per tonne, the resources are mainly directed to surrounding small steel mills; the price of I grade metcoke (A<12.5 percent) is CNY 1,700-1,720 per tonne, but spot resources are limited.

Coke producers are recently suffering hard times because purchasers are inactive in placing the orders and coke price has accumulatively dropped by CNY 30-70 per tonne from the end of June. Currently, Shandong's coke producers mainly idle 50 percent capacity.

Shandong-based Rizhao Steel announces to overhaul reinforced-bar product lines during July 1 and July 31, the move will cause a production drop of around 100,000 tonnes. We learn that Rizhao Steel now has over 700,000 tonnes coke, so it decreases the coke purchasing bookings and even lower the offer by CNY 50 to CNY 1,650 (for the local coke).

Jiangsu's steel head Shagang has announced to reduce July coke purchase price by CNY 100 to CNY 1,740 per tonne; Jiangxi's Pingxiang Steel is willing to pay CNY 1,830 per tonne to buy II grade metcoke (delivered to steel mill).

Steel mills in East China are depressed as steel price continue falling.