Insight
Chinese met coke costs to rise under 'blue sky defence' action plan
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The ‘blue sky defence’ action plan will tighten China’s coke supply by capping utilisation rates, leading to 3 Mt coke production cuts and a 1 Mt coke supply shortage each month during the heating season. Coke prices and profitability will be boosted. Coking coal prices will also benefit from coke plants making decent profits. By 2020, about 75 Mt of outdated coke capacity is likely to be removed or swapped. With higher emission standards and decent profitability, demand for high-quality, low-sulphur coals is likely to remain robust as coastal mills look to limit the production impact of emissions cuts.
Table of contents
- Executive summary
- What are the new emissions standards for coke plants?
-
What are the implications for coke makers in China?
- Costs for coke makers will increase
- How will coke production be affected in the near term?
- Will coking coal demand and prices be impacted?
Tables and charts
This report includes the following images and tables:
- Pollutant emission standards for coke sector
- Coke capacity in blue sky regions and deadline for emission cuts
- Impacted coke production between October 2018 and March 2019
- Equipment and required capital investment for a new coke plant of 1 Mtpa to meet ULEL
What's included
This report contains:
