National coke output in 2020: down 2.2% year-on-year to 464 million tons; the iron and steel combined coking enterprises produced 110 million tons, up 5.5% year on year

On January 18, Cui Pijiang, president of China Coking Industry Association, made a keynote report at the fifth member (director) meeting of the 7th session of China Coking Industry Association. GPC graphite powder with high electrical and thermal conductivity for smelting steel.

Coke market ups and downs, enterprises overall operation efficiency is good

According to statistics, in 2021, China's coke output was 464 million tons, down 2.2% year on year. Among them, the coke output of iron and steel combined coking enterprises was 110 million tons, up 5.5% year on year; The coke output of other coking enterprises was 355 million tons, down 4.3% year on year. With the rapid decline of crude steel and pig iron production, coke production also showed an significant downward trend. "Double control of energy consumption, environmental protection supervision and coking coal prices rapid rise have all had a certain impact on coke output." Cui Pijiang said, "although coke price fluctuates greatly, the overall operating efficiency is good. Taking a comprehensive consideration, coke and pig iron output basically keep pace with each other, and enterprises to adapt to market changes continuously enhanced. However, the price fluctuations of bulk raw fuels are still of great concern, and the safety and stability of industrial chain and supply chain are more important."

In 2021, China's coke export volume was 6.45 million tons, up 75.38% year on year, and the cumulative average export price was $366.7/ton, up 65.53% year on year; coke import volume was 1.33 million tons, down 55.3% year on year, and the cumulative average import price was $338/ton, up 45.74% year on year.

Coking industry development shows three bright spots

"In 2021, there are three bright spots in coking industry development, which will provide favorable support for the high-quality development of coking industry in the future." Cui Pijiang pointed out.

• First, continue to promote the optimization and adjustment of industrial structure. From 2020 to 2021, Shanxi, Hebei and Henan alone eliminated or shut down 107 coking enterprises, 232 coke ovens and 48.86 million tons of coke capacity. Inner Mongolia Autonomous Region issued a document at the beginning of 2021, clearing coking great integration and withdrawing 17.05 million tons of coke production capacity from 2021 to 2023, involving 9 steel enterprises, 17 coke enterprises and 36 coke ovens with a height below 5.5 meters in the carbonization room. On April 12, 2021, Shandong province put forward the task of "setting coke with steel" and a coke steel ratio of 0.4 to promote the integration of steel and coke. By the end of 2021, the coking capacity of the province has been reduced from 46 million tons to about 33 million tons, and the output has been controlled at 32 million tons. The reduced capacity should be shut down in principle.

• Second, the level of technology and equipment has been continuously improved. According to statistics, as of June 2020, the proportion of advanced capacity of China's coke oven carbonization chamber 5.5 meters above has reached 62.68%. Since 2021, a large number of coke capacity replacement, upgrading and transformation projects have been completed and put into operation, most of which are basically oversized coke ovens with a carbonization chamber height of 6.25m and above, with a design capacity of 13 million tons/year. At present, the proportion of advanced capacity has exceeded 65%. By the end of 2020, 325 enterprises in China had built 396 sets of CDQ devices, with a total CDQ capacity of 52875 tons/hour. In the first half of 2021 alone, 28 sets of 5515 t/h CDQ units are under construction. In addition, intelligent manufacturing is advancing steadily. For example, the automatic operation rate of the four coke ovens in Baoshan base of Baosteel reached 99%, and all coal loading, coke guiding and electric locomotives realized unmanned operation.

• Third, actively promote the realization of the goal of green and low-carbon development. On September 22, 2021, the CPC Central Committee and the State Council issued the Opinions on Implementing the New Development Concept in a Complete, Accurate and comprehensive way to Achieve Carbon Peak and Carbon Neutrality, which set out specific requirements for specific time points.

Promote low-carbon sustainable development of coking industry

• With regard to the main tasks of the coking industry in 2022, Cui Pijiang pointed out: "the coking industry should constantly improve the ability to implement the new development concept, build a new development pattern and promote high-quality development, and strive to realize the low-carbon sustainable development of China's coking industry." Specifically, there are mainly the following aspects:
  First, recognize the new development situation and advance the new goal of low-carbon development. In 2022, facing the new situation and new tasks under the "double carbon" goal, coking enterprises should check the quantitative indicators stipulated by the state and local governments one by one, issue specific planning measures as soon as possible, take the initiative and achieve the target requirements as early as possible.

• Second, actively respond to changes in operating conditions and enhance the ability of enterprises to resist risks.

• Cui Pijiang predicts that in 2022, the global economy will maintain a restorative growth, the international demand for coking coal will continue to grow, and the domestic demand for coking coal is expected to basically maintain the level of 2021. In the short term, we should attach great importance to the stability of resource channels; In the long run, with the reduction of China's steel consumption and the increase of scrap consumption, the overall coke consumption will decline. Therefore, the consumption of coking coal will gradually decrease. We should give full play to the role of domestic and foreign markets and resources to ensure the resource supply of coking coal.

• Third, take advantage of the east wind of deepening economic reform to create a modern industrial chain ecosystem. Cui Pijiang said that coking enterprises, especially private independent coking enterprises, should earnestly seize the favorable opportunity of the mixed reform of state-owned enterprises, broaden the vision, based on long-term, boldly promote merger and reorganization, and actively seek the capital integration of upstream and downstream industrial chains,so as to realize complementary advantages and strong combination, and further enhance the market competitiveness of enterprises; Actively innovate business models and establish an industrial chain ecosystem with long-term stability, mutual benefit and win-win, modern economic system of the industrial chain ecosystem, about the latest coke news we know more.