[SMM coal and coke daily brief review] 20250618

[SMM Daily Briefing on Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,180 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,200 yuan/mt.

In terms of raw material fundamentals, some coal mines have halted production, while most maintain normal operations, leading to a slight tightening in actual supply. Downstream purchasing strategies lean towards caution, with a strong wait-and-see sentiment. Online transaction prices have seen more declines than increases, but the current drop in coking coal prices has narrowed, and the likelihood of further significant declines is relatively small. In the short term, coking coal prices may remain in the doldrums.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,495 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,355 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,170 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,080 yuan/mt.

In terms of supply, environmental protection inspections have intensified, and some coking enterprises have voluntarily cut production due to losses and inventory pressure, leading to a contraction in coke supply. However, downstream purchasing willingness is average, and some coking enterprises still have accumulated inventory. On the demand side, steel mills' coke inventory is at a relatively high level, coupled with the impact of the traditional off-season, steel mills maintain a purchasing-as-needed strategy. In summary, market supply remains relatively loose. In the short term, the coke market may remain in the doldrums, and the expectation for a fourth round of price reductions still exists. [SMM Steel]