[SMM Coking Coal & Coke Daily Brief]
Coking coal market:
Linfen low-sulphur coking coal was quoted at 1,510 yuan/mt. Tangshan low-sulphur coking coal was quoted at 1,560 yuan/mt.
Coking coal side, last week individual mines in Lvliang underwent safety inspections, resulting in brief production halts and a slight decline in production. Downstream procurement demand persisted, supporting coking coal prices to remain stable. However, the earlier price rally in coking coal was excessive, and transactions for some high-priced coal grades remained difficult, with room for price negotiation in the market. In the short term, coking coal prices may remain in the doldrums.
Coke market:
The nationwide average price of first-grade metallurgical coke (dry quenching) was 1,790 yuan/mt, quasi-first-grade metallurgical coke (dry quenching) 1,650 yuan/mt, first-grade metallurgical coke (wet quenching) 1,440 yuan/mt, and quasi-first-grade metallurgical coke (wet quenching) 1,350 yuan/mt.
In terms of supply, coke producers' profitability has recovered notably, production enthusiasm was moderate, operations remained stable, and coke sales were smooth with no significant inventory pressure for the time being. Demand side, steel mills maintained normal production, with daily average blast furnace hot metal output rising slightly, increasing rigid demand for coke. However, steel mill profitability was mediocre, and only some steel mills with low inventory actively procured, while most steel mills slowed down their coke procurement pace. Overall, bullish sentiment has faded notably, and the coke market may remain stable in the short term. [SMM Steel]
