Demand for coke and steel products in the Chinese domestic market is expected to grow in the long run, siad Huang Jingan, the president of the China Coking Industry Association (CCIA).

However, the prices of coke and steel products are not likely to jump up significantly, he said.

In April, the average daily output of crude steel in China reached 1.85 million tonnes, while in May and Jun the average daily volumes declined to 1.81 million tonnes and 1.75 million tonnes respectively.

Nevertheless, average daily coal consumption in China has been rising, reaching 1.11 million tonnes in Jun.

Mr Huang commented that the decline in coke prices in China may be attributed to increased domestic coke production.

The CCIA official said he expected that, as the raw material for coke production, supplies of coking coal will register a tightening in the third quarter. He also said that the coking coal price for the third quarter will rise in light of the 13 percent increase for the quarter agreed by producers from Japan and South Korea with the Australian suppliers.