The price of coke continues to decline

From January to November 2024, the total profit of industrial enterprises above the designated size in China reached 6,667.48 billion yuan, with a year-on-year decline of 4.7%. Enterprises of different ownership types showed varied performances: The profit of state-controlled enterprises was 2,038.77 billion yuan, down 8.4% year-on-year; that of joint-stock enterprises was 5,014.30 billion yuan, down 5.7%; the profit of foreign-invested enterprises and those invested by Hong Kong, Macao and Taiwan was 1,606.29 billion yuan, down 0.8%; and that of private enterprises was 1,964.91 billion yuan, down 1.0%.

In terms of different industries, the profit of the mining industry was 1,079.62 billion yuan, with a year-on-year decrease of 13.2%; that of the manufacturing industry was 4,852.49 billion yuan, down 4.6%; and the profit of the production and supply of electricity, heat, gas and water industries was 7,353.7 billion yuan, up 10.9%.

The profit situations of major industries were as follows: The non-ferrous metal smelting and rolling processing industry witnessed a 20.2% year-on-year growth in profit; the electricity and heat production and supply industry grew by 13.5%; the textile industry increased by 4.6%; the computer, communication and other electronic equipment manufacturing industry rose by 2.9%; the agricultural and sideline food processing industry grew by 0.5%; the general equipment manufacturing industry slightly declined by 0.1%; the special equipment manufacturing industry dropped by 0.9%; the electrical machinery and equipment manufacturing industry decreased by 3.1%; the oil and natural gas exploration industry declined by 4.4%; the automobile manufacturing industry dropped by 7.3%; the chemical raw materials and chemical products manufacturing industry declined by 9.3%; the coal mining and washing industry decreased by 22.4%; the non-metallic mineral products industry dropped by 48.2%; the ferrous metal smelting and rolling processing industry plunged by 83.7%; the petroleum, coal and other fuel processing industry shifted from profit to loss.

Focusing on the steel industry in particular, the profit of the ferrous metal smelting and rolling processing industry from January to November was 7.86 billion yuan. Before that, from January to October, it had a loss of 23.32 billion yuan, but in November alone, it achieved a profit of 31.18 billion yuan, showing significant fluctuations. It is worth noting that during the same period, the price of coking coal continued to decline. As a key raw material for steel, its price movements have a significant impact. Although the downward price trend may reduce the costs of steel enterprises, it also reflects the changes in market supply and demand as well as the intensified competition. Steel enterprises need to closely monitor the coal price and other related factors and flexibly adjust their strategies to pursue sustainable development.