At present, most domestic steel mills use coke to make steel, basically using coke instead of coal. Coal is only used in ironmaking, but the main fuel in ironmaking is still coke. In the use of coal, in order to reduce the consumption of coke, pulverized coal is used as fuel for blast furnace injection. The injected pulverized coal accounts for a part of the fuel consumed in ironmaking, and the injected pulverized coal will not exceed half of the fuel required for ironmaking. In China, anthracite powder or soot powder will be used as fuel for injection.

Coke is an important raw material for smelting steel, and the fluctuation of coke market price will directly affect the cost of producing steel, thus affecting the operating profit of steel enterprises. After the listing of coke futures, its market function will play a greater role in the operation of steel mills, so paying attention to the hedging and arbitrage operation of steel mills is also conducive to the development of coke futures.

Only Songshan, Shaogang, has achieved full coverage of coke capacity and steelmaking capacity in domestic iron and steel enterprises. At present, the price of coke is very high, which has a great influence on the cost of steel. The coke capacity of most steel enterprises can only cover 30% of steelmaking capacity, and the rest are outsourced. This is the advantage of Shaogang. Once the price of resources rises, the profit of Shaogang will increase exponentially. Once the prosperity of the industry is improved, the gross profit margin and net interest rate of most steel enterprises are far behind those of Shaogang.