[SMM Daily Review on Coal and Coke] 20250114

SMM Daily Review on Coal and Coke

Coking Coal Market:

The price of low-sulfur primary coking coal in Linfen is 1,450 yuan/mt. The price of low-sulfur primary coking coal in Tangshan is 1,500 yuan/mt.

In terms of raw material fundamentals, year-end safety inspections are stringent, with some coal mines already halting production for holidays. Meanwhile, most coal mines are temporarily operating normally but are expected to begin large-scale shutdowns around January 20, leading to a contraction in coal mine supply. Heavy snowfall may occur before the Chinese New Year, and enterprises with low inventory levels show intentions to restock, though their willingness to accept high-priced coking coal is moderate. In summary, the coking coal market is expected to fluctuate downward, and price stabilization remains challenging.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,900 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (dry quenching) is 1,760 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,540 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (wet quenching) is 1,458 yuan/mt.

In terms of supply, coke production remains stable, and sales performance is moderate. On the demand side, the effect of steel mills' winter stockpiling policies is limited, end-use demand is weak, and although steel prices are rising, the market lacks transactions. Steel mills still aim to seek profits upstream. In summary, the outlook remains pessimistic, and the seventh round of coke price cuts this week is likely to continue to be negotiated. 【SMM Steel】