[SMM Coal and Coke Daily Review] Short-Term Coke Market Remains Stable

On January 2, SMM Coking Coal News,

Coking Coal Market:

Low-sulfur primary coking coal in Linfen was quoted at 1,450 yuan/mt. Low-sulfur primary coking coal in Tangshan was quoted at 1,600 yuan/mt.

Fundamentally, coal mine production decreased slightly as safety measures were prioritized, leading to a reduction in coking coal supply. However, due to market sentiment of wait-and-see, downstream HRC purchases cooled down. Coupled with cautious purchasing by traders, the purchase volume of coking coal decreased compared to earlier periods. Market transactions were weak, and coking coal prices are expected to see a slight downward adjustment.

Coke Market:

The nationwide average price of Grade I Metallurgical Coke (dry quenching) was 1,955 yuan/mt. The nationwide average price of Quasi-Grade I Metallurgical Coke (dry quenching) was 1,815 yuan/mt. The nationwide average price of Grade I Metallurgical Coke (wet quenching) was 1,590 yuan/mt. The nationwide average price of Quasi-Grade I Metallurgical Coke (wet quenching) was 1,508 yuan/mt.

In terms of supply, most coke enterprises maintained good profit levels, with stable operating rates. Additionally, the impact of environmental protection measures weakened, and some coke enterprises increased their operating rates. On the demand side, steel mill maintenance and production cuts decreased, leading to higher daily coke consumption. However, with active shipments from suppliers, steel mills received adequate deliveries and primarily adopted purchasing as needed. Overall, the coke market fundamentals are moving towards balance, with cost support gradually stabilizing. In the short term, the coke market is expected to remain stable.