Export prices for coke to fall back slightly
----Interview with Liu Zhiqiang
General Manager
Tianjin FengjinZe Trading Co., Ltd.
- Asian Metal: Mr. Liu, thank you very much for accepting Asian Metal's interview. First of all, could you please give us a brief introduction to your company's background and main businesses?
- Our company was established in 2013 and mainly engages in the coke and coal businesses. We have established long-term cooperation with three coking plants in Jinzhong region and normally would export approximately 60,000t of coke each month.
- Asian Metal: Mr. Liu, could you briefly introduce your company's coke export business at this stage?
- We mainly export to Vietnam and Japan currently. Last month, we loaded three ships of the material with two each carrying 10,000t and one holding 15,000t.
- Asian Metal: Mr. Liu, may we know the advantages of your company's coke export business?
- We have our own coal cleaning plant which could provide 100,000t of cleaned coal to our cooperative coking plants each month, so we can get sufficient supply of coke with a price advantage.
- Asian Metal: Mr. Liu, coke prices have kept rising in the Chinese market over the past three months and how do you see the future market?
- Currently, coke prices have risen to a high level and furthermore coke stocks in both steel mills and ports increased. Consequently, if domestic steel mills start to restrain production in the future, coke prices would struggle to keep the upward trend or even fall back slightly.
- Asian Metal: China would export nearly 10 million tonnes of coke each year, representing strong market demand, so could you please unveil your sales target of this year?
- We have exported about 600,000 tonnes of coke this year independently and 1 million tonnes jointly with a domestic exporter, with an expectation to export another 400,000 tons by the end of this year.
- Asian Metal: We have learned that some small foreign customers require container delivery, and do you have the interest in that?
- We prefer to cooperate directly with foreign steel mills, but we would also do business with traders if they are reliable.
- Asian Metal: Does your company have a specific request for payment?
- Most of our customers adopt sight L/C while a small number of customers take T/T, 30% down.
- Asia Metal: Thank you very much for your valuable time and wish your company a bright future.
