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PrintChina's coking industry is expected to improve its performance within three months with the implementation of the government's new measures, according to Zhao Tujia, Deputy Secretary of Shanxi Coking Industry Association.
The government has adopted a package of measures to spur real estate industry and construction of airport and expressway, thus stimulating market demand for steel.
Of China's coke output, 85 percent are used in steel production.
The downturn of real estate market has dragged down coke price from 3,000 yuan/ton to 1,000 yuan/ton, and led to overstock of coke.
According to Zhao, coking industry has dived to the bottom with more than half of coking enterprises restricting production and some even closing down.
Zhao called on coking enterprises to make efforts to develop coal chemical products, and coordinate with upstream and downstream industries to strengthen technology innovation.
An expert noted that coke oven gas could be used for fuel, power generation, and production of fertilizer, methanol, DRI or synthetic natural gas.
As China forbids new gas-to-methanol projects, the proportion of coal-to-methanol projects will be further promoted, added the expert.
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