China will cut its output of coke, a key ingredient in the
production of steel, by 20 percent next year to bridle polluting
industries, according to Ministry of Commerce sources.
Insiders say the move will impose intense pressure on the
domestic coke market that is already overheated this year, and will
also impact local iron and steel companies.
At the end of May, China agreed to maintain last year's export
level of 4.5 million tons of coke to the European Union this
year.
European steel manufacturers have a pressing need for coke from
China, as a worldwide shortage of the resource has driven up its
price.
China produced 178 million tons of coke in 2003, accounting for
half of the world's total supply. Of its 14.7 million tons of coke
export last year, one third went to EU.
(Xinhua News Agency August 14, 2004)