Recently, Taiyuan City, Shanxi Province issued the "Notice on Completing Coking Capacity Reduction and Elimination Tasks on Time". The document pointed out that the Taiyuan coke oven with a height of 4.3 meters and a clean heat recovery coke oven will be shut down before October 31, 2020. According to research conducted by relevant institutions, Taiyuan City has a total of 13.5 million tons of coking capacity. The coking capacity of coking companies involved in the shutdown list is 9.6 million tons, which accounts for a relatively large proportion. In addition, the local new production capacity is mostly concentrated in the late fourth quarter. Therefore, if the capacity elimination of Taiyuan City, Shanxi Province is strictly implemented in accordance with the document, an obvious coke supply gap will be caused. As the capital of Shanxi Province, Taiyuan City will play a leading role if it first emphasizes the exit according to the time node required by the previous provincial government documents. It is expected that other cities will also increase policy efforts. Therefore, this year's coking capacity withdrawal in Shanxi Province is still worth looking forward to.

In addition, this year, in addition to Shandong Province and Xuzhou City in Jiangsu Province that have completed coking capacity reduction plans, Shanxi, Hebei, and Henan will complete coking capacity reduction tasks in the fourth quarter. The planned capacity reductions in these three provinces are all 10 million tons, and the reduced capacity is greater than the new capacity. Therefore, if all regional policies are strictly implemented by then, coke prices may continue to rise.

The continuous advancement of the coking capacity reduction plan since the beginning of this year has been effectively reflected in the coke production. For example, at the end of June 2020, the withdrawal of coking capacity in Xuzhou City, Jiangsu Province was revealed in the production data in July. Although the profits of coke enterprises are operating at a high level, there is still a significant drop in output. In July 2020, my country's coke production was 39.97 million tons, a decrease of 0.5% from June and an increase of 0.91% from the same period last year. From January to July, the cumulative output of coke was 266.444 million tons, a cumulative decline of 2.20% year-on-year, which was still lower than the same period last year.