Shanxi Coking: The dominated industry is in decline, but it is still not seen in the short term
Question 1: The current production scale? Is it limited production? The company currently produces four coke ovens, of which No. 1 and No. 2 have a total capacity of 1 million tons, and No. 3 and No. 4 have a total capacity of 1.3 million tons, a total of 2.3 million tons, 5 and 6 The number one coke oven is scheduled to be completed in the first half of next year next year, when the production capacity will reach 3.6 million tons. No new production capacity will be released thereafter, and the expansion of production scale will be completed by acquiring and merging existing production capacity. The existing 3 million tons of coking coal group's production capacity is expected to become the target of the company's integration in the future.
The company began to gradually resume production in June. It is currently operating at full capacity and the loss level has also been reduced from RMB 60 million to 70 million yuan in the first half of the year to RMB 20 million per month. The company's current ability to operate at full capacity is mainly due to the fact that raw coal has a stable downstream demand. In addition, due to the company's higher fixed costs, full-load production can reduce unit costs.
Question 2: What are the main sources of raw coal, sales, and transportation? At present, 60-70% of the company's raw coal is purchased from the Coking Coal Group, and the rest is supplemented by ground extraction. The main customers of the company overlapped with the customers of the Coking Coal Group, all of which were large-scale steel mills. Sales were not a problem. In addition, the Coking Coal Group and the company reached an agreement to bundle sales of the group's coking coal and the company's coke from next year to further protect the company’s product sales.
Transportation is another major benefit of the company's purchase of raw coal from the Coking Coal Group, which means that the wagons are protected. Currently, the company needs 120 wagons per day for coke handling, and Coking Coal Group supplies 90 coal wagons for raw coal to resolve most of the company's wagon requirements.
Question 3: Coke price? Cost structure? The company's current full-focus tax price is RMB 1430/t. The proportion of clean coal is mainly 20% for coking coal, 40% for 1/3 coke, 20% for fat coal and lean coal, 65% for raw coal in total cost, 10% for labor cost, and 25% for depreciation and other costs. The estimated total cost of ton coke is RMB 1,600/tonne, which is a loss of RMB 170 per ton of coke produced.
Question 4: Is there an obstacle to extending upstream? Downstream extension is the main direction for the future? The company is guaranteed as a raw coal for the subsidiary company of Coking Coal Group, and the company itself does not have the talent and accumulation of coal. At present, it has no intention to extend upstream. The downstream extension is still the main direction for the future. At present, the company's chemical business also begins to operate at full capacity. It currently has 300,000 tons of coal tar processing, 200,000 tons of methanol, and 130,000 tons of urea. It mainly produces metallurgical coke, coking benzene, and urea. , Methanol, industrial naphthalene, carbon black, modified asphalt and more than 50 kinds of products. Among them, the chemical products produced from the 300,000-ton coal tar project will increase from 17 to 33 in the second phase, and the products will be refined gradually; the methanol product produced by the 200,000-ton methanol project will follow 200,000 tons. The completion of the acetic acid project has become a raw material for the project and the methanol industry chain has been extended. The 100,000-ton crude benzene refining project will adopt the latest crude benzene hydrofining process to produce chemical products such as refined benzene, toluene and xylene. Due to the current full-load operation, the fixed cost of the chemical business units is expected to reach a break-even point.