[SMM Daily Review of Coal and Coke] 20250116

SMM Daily Review on Coal and Coke
Coking Coal Market:
Low-sulfur primary coking coal in Linfen is quoted at 1,450 yuan/mt. Low-sulfur primary coking coal in Tangshan is quoted at 1,500 yuan/mt.
On the raw material fundamentals, as the Chinese New Year approaches, some private coal mines are gradually halting operations, leading to a contraction in coking coal supply. Downstream buyers are still purchasing as needed, while some coal mines face significant sales pressure, resulting in inventory accumulation. Online auctions for coal mines show mixed performance, but transaction prices for most coal types are declining. Market sentiment remains weak, and support for coking coal prices is limited.
Coke Market:
The nationwide average price for Grade I Metallurgical Coke (dry quenching) is 1,900 yuan/mt. The nationwide average price for Quasi-Grade I Metallurgical Coke (dry quenching) is 1,760 yuan/mt. The nationwide average price for Grade I Metallurgical Coke (wet quenching) is 1,540 yuan/mt. The nationwide average price for Quasi-Grade I Metallurgical Coke (wet quenching) is 1,458 yuan/mt.
In terms of supply, coke enterprises are maintaining high operating rates and are actively shipping products, but their coke inventories continue to accumulate. On the demand side, recent favourable macro news has slightly improved market sentiment. However, steel mills' coke inventories remain at reasonable levels, with purchasing as needed and controlled arrivals. Overall, the oversupply situation in the coke market is unlikely to improve, and coke prices are expected to remain stable with a weak trend in the short term, with the market still anticipating potential price reductions. 【SMM Steel】