[SMM Daily Review on Coal and Coke]

SMM Daily Review on Coal and Coke

Coking Coal Market:

The price of low-sulfur primary coking coal in Linfen was 1,450 yuan/mt, while in Tangshan it was 1,500 yuan/mt.

In terms of supply, mainstream coal mines maintained normal production, but inventory faced pressure. Coke prices dropped again, and market pessimism further spread. Downstream coke enterprises were cautious about raw material procurement, and traders delayed purchases while adopting a wait-and-see approach. Most coal mines experienced inventory accumulation, sales pressure increased, and online auctions saw significant price reductions with some auctions failing. Coking coal prices still faced downward pressure.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) was 1,900 yuan/mt, while quasi-Grade I metallurgical coke (dry quenching) averaged 1,760 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,540 yuan/mt, and quasi-Grade I metallurgical coke (wet quenching) averaged 1,458 yuan/mt.

In terms of supply, the raw material side continued to offer concessions, but the sixth round of coke price cuts was implemented. Some coke enterprises in certain regions incurred losses, leading to slight production cuts, which slightly alleviated the supply surplus of coke. On the demand side, steel mills successively announced winter stockpiling policies, but transactions remained sluggish. With falling steel prices, steel mills were likely to continue seeking profits from the raw material side. Overall, steel prices dropped slightly, and the cost support for coke weakened, leaving room for further coke price reductions.

【SMM Steel】