[SMM Daily Review on Coal and Coke] 20250124

【SMM Daily Review on Coal and Coke】

Coking Coal Market:

The price of low-sulfur primary coking coal in Linfen is 1,400 yuan/mt. The price of low-sulfur primary coking coal in Tangshan is 1,500 yuan/mt.

In terms of raw material fundamentals, coal mines have entered the holiday period, leading to a decline in production. Additionally, heavy snow and cold weather have hindered transportation, increasing the difficulty for coke plants to restock. However, shrinking profits at coke plants have reduced their enthusiasm for raw material purchases, with purchasing as needed being the main approach. In summary, coking coal prices are expected to remain stable before the Chinese New Year, with a potential increase after the holiday due to downstream restocking.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,845 yuan/mt. The nationwide average price of quasi-Grade I metallurgical coke (dry quenching) is 1,705 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,490 yuan/mt. The nationwide average price of quasi-Grade I metallurgical coke (wet quenching) is 1,408 yuan/mt.

In terms of supply, coke plant profits have shrunk, with some plants experiencing losses, though these remain within tolerable limits for coke plants. Overall, production levels have been maintained at previous states, and coke inventories at coke plants continue to accumulate. On the demand side, with the Chinese New Year approaching, the market is gradually entering a holiday mode, leading to sluggish market demand and a generally loose supply-demand balance for coke. In summary, the coke market is expected to remain stable before the Chinese New Year, with a slight upside room for coke prices after the holiday due to restocking by steel mills.【SMM Steel】