Semi-coke Group announces measures in response to extreme market conditions
2020-11-27 18:00:03 [Print]
On November 25, Semi-coke Group issued a notification on measures for its subsidiary companies in response to current extreme market conditions. Main contents of the notification are as follows:
On November 25, 2020, China Coal Processing & Utilization Association (CCPUA) semi-coke branch held a Shenmu-Fugu semi-coke workshop. At the meeting, participants coming from semi-coke plants in Yulin, Shenmu, Fugu and Inner Mongolia introduced their current operation and sales situation, revealing that now prices for coal used in semi-coke production are higher than RMB600/t (USD91.21/t); semi-coke producers who have their own power generation facilities and magnesium metal production lines can use part of their industry-chain profits to support semi-coke production, but still suffer losses owing to the fact that their selling prices are lower than production costs, and quite a high proportion of producers suffered losses in their semi-coke production.
Meeting participants also exchanged information and views on upstream and downstream industries. Regarding upstream coal industry, as winter falls, civil-purpose coal consumption increases significantly; further supported by coal consumption by coking industry and coal washing plants, coal prices are expected to fluctuate up in the future, or at least they are of small possibilities to drop. Regarding downstream industries, thanks to China's excellent performance in controlling the COVID-19 epidemic, downstream industries enjoy safe production conditions; further supported by huge overseas demand for epidemic prevention materials, there are periodic increases happening in prices for downstream products.
Based upon consensus reached at the meeting and upon calculation by Semi-coke Group, the company required its subsidiaries to abide by anti-unfair competition law and not to dump semi-coke at prices lower than production costs. The specific requirements are as follows:
1. With the year coming to an end, subsidiaries are facing increasing pressure in ensuring safe production in this period. Therefore, subsidiary companies should cut production properly and not ramp up production aimlessly; should refill enough raw material stocks to ensure safe production in winter.
2. Subsidiary companies are suggested to implement following Inc-VAT EXW prices for semi-coke from 0 o'clock, November 28, 2020 on: RMB830/t (USD126/t) for medium size lump, RMB780/t (USD119/t) for small size lump, and RMB550/t (USD83.61/t) for granule.
On November 25, 2020, China Coal Processing & Utilization Association (CCPUA) semi-coke branch held a Shenmu-Fugu semi-coke workshop. At the meeting, participants coming from semi-coke plants in Yulin, Shenmu, Fugu and Inner Mongolia introduced their current operation and sales situation, revealing that now prices for coal used in semi-coke production are higher than RMB600/t (USD91.21/t); semi-coke producers who have their own power generation facilities and magnesium metal production lines can use part of their industry-chain profits to support semi-coke production, but still suffer losses owing to the fact that their selling prices are lower than production costs, and quite a high proportion of producers suffered losses in their semi-coke production.
Meeting participants also exchanged information and views on upstream and downstream industries. Regarding upstream coal industry, as winter falls, civil-purpose coal consumption increases significantly; further supported by coal consumption by coking industry and coal washing plants, coal prices are expected to fluctuate up in the future, or at least they are of small possibilities to drop. Regarding downstream industries, thanks to China's excellent performance in controlling the COVID-19 epidemic, downstream industries enjoy safe production conditions; further supported by huge overseas demand for epidemic prevention materials, there are periodic increases happening in prices for downstream products.
Based upon consensus reached at the meeting and upon calculation by Semi-coke Group, the company required its subsidiaries to abide by anti-unfair competition law and not to dump semi-coke at prices lower than production costs. The specific requirements are as follows:
1. With the year coming to an end, subsidiaries are facing increasing pressure in ensuring safe production in this period. Therefore, subsidiary companies should cut production properly and not ramp up production aimlessly; should refill enough raw material stocks to ensure safe production in winter.
2. Subsidiary companies are suggested to implement following Inc-VAT EXW prices for semi-coke from 0 o'clock, November 28, 2020 on: RMB830/t (USD126/t) for medium size lump, RMB780/t (USD119/t) for small size lump, and RMB550/t (USD83.61/t) for granule.
Magnesium Powder 99.9%min FOB China
Unit:USD/mt
China magnesium powder producers' suspension number statistics by province by month
Unit: pcs
