Prices for coke to increase.
Price level for coke will…

Prices for coke to increase.

Price level for coke will keep rising in the nearest future, – reported Anatoliy Starovoyt, the General director of Ukrkoks Association. Increasing of production costs for coke is a main cause of its price rising.

Increase in production costs for coke was caused by the considerable price rising for Russian coking coal contributed by the sharp rising of tariffs for railway transportation of coal by Russia. Prices increased by 22-23% in average. Taking into account the considerable portion of Russian raw materials (6 mn t, 25% of coking coal used for coke production), the mentioned rising of tariffs considerably affected coke production costs.

Despite the declared stability of the Ukrainian coal prices, they also rose by 25-26% during the last three months.

Besides, at the present moment, the world price for coke makes up over USD/t 200. World metal prices increased by more, than 50% for the last several months. As a result, profitability of metal makers reaches 30%, when coke producers’ profitability makes up only 5%.

According to Delovaya nedelya.