The Coal Trader

China’s Met Coke production in 2023

Key points:

  • Production: China’s metallurgical coke production reached an estimated 490 million mt in 2023, up 3.6% from 2022.
  • Supply: While new coking capacity is expected to rise in 2024, old capacity elimination will lead to a net increase of only 14.06 million mt.
  • Demand: Overall profit for the coking industry is anticipated to be low in 2024 due to increased coke production and expected rise in coke supply.
  • Reasons for low profit:
    • Increased coke production from new and existing capacity.
    • Weaker coal prices leading to lower cost of imported coke, putting pressure on domestic prices.
  • Future outlook:
    • Despite a slight increase in coke consumption driven by factors like central heating expansion, overall demand is expected to be muted due to continued growth in non-fossil energy sources.

Additional details:

  • Specific events within 2023 that impacted the coke market: declining coke prices and increased imports from Indonesia, Japan, and Mongolia.
  • Fenwei, a research institute, is cited as the source for the production and consumption figures.

Overall, analysts predict a challenging year for China’s coking industry in 2024, with increased production and subdued demand leading to lower profits.