Shanxi Coke Limited price increase in future difficult to fall also difficult to rise

Event: Recently, Shanxi Coking Enterprise Alliance Research to provide guidance on the Coke market. First, the limited-limiting. The alliance requires companies to follow the industry-wide measures to limit the limits of the April to maintain the minimum to prevent the price of coking coal rebound.　　The coking enterprises in Hebei and Inner Mongolia are required to increase the limiting range and obey the whole industry. The second is to raise prices. Union said that since May 1, 2009, coke prices of coking enterprises in Hebei, Shandong and Inner Mongolia are up to 30 yuan per ton on the basis of the quality, cost and mode of transportation of coke in different regions, and coke prices of coking enterprises in Shanxi and Shaanxi are up 60 yuan per ton on the basis of April.　　All enterprises are invited to communicate with each user according to the guidance and arrange production and marketing work. Alliance This guidance also said that since March 2009, individual users malicious default payment, unreasonable penalty, do not execute the contract, contrary to market rules and trading regulations, Coking Enterprise Alliance will be highly concerned.　　All the associations should strengthen the information exchange, and will take measures inside the units that violate the alliance decision. We believe that the second wave of coking enterprise this year has passed. The boom in the coke industry followed the changes in the metallurgical industry, the first time in the steel industry to inventory, the steel industry blind expansion, leading to two of the steel industry inventory, coke prices also with the steel industry after a brief recovery fell again. 　　With the steel industry nearly two months of limited and inventory digestion, the recent steel price appears a small rebound, to increase the price of Coke to provide a possibility. There are positive changes in the Coke industry level. Independent coking Enterprise capacity dispersion, the lack of the right to the upper and lower reaches of the word, so that the industry to survive in the grip, but this year the industry has been positive changes, the formation of Shanxi Coking Alliance, Shandong Coking group Formation and the Inner Mongolia, Hebei Coking Industry association with each other, the production, transport, price control began to increase　　The independent coking enterprise began to seek the right of speech to the upstream and downstream. This year "Shanxi coking industry Revitalization planning" for the coking industry to bring dawn. "Planning" proposed that in order to effectively control Coke production capacity, by the end of 2011, the province will be able to control the total output of coke within 140 million tons, to 2015, the entire province of Coke can be controlled within 120 million tons.　　In the industrial group on the road, enterprise integration, mergers should be avoided, such as Shanxi Coking, Aetna group in technical equipment and by-products of recycling to do excellent business, will undoubtedly be the main body and beneficiaries of integration. Generally speaking, the coke industry is still in oversupply stage, low production efficiency is the great pressure of price rise, but with the investment of fixed assets, steel industry Two inventory end and the industry began a conscious self-regulation, coke prices basically did not fall space, the industry will stabilize in the self-regulation. In the absence of significant growth in demand and no significant increase in capacity utilization, we currently give the Coke industry "neutral" rating.