[SMM Daily Review on Coal and Coke] 20250211

【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, while in Tangshan it is 1,500 yuan/mt.

In terms of fundamentals, coal mines resume production, and coking coal supply is gradually recovering. However, steel mill profits remain poor, and their coking coal inventories are at safe levels, focusing mainly on consuming existing inventory. Demand for coking coal is weak, and traders maintain a strong wait-and-see sentiment, holding a cautious outlook on the market. Online auction transaction prices continue to decline, and coal mine orders remain weak. In summary, the coking coal market is expected to fluctuate downward in the short term.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,845 yuan/mt, while that 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, and that of Quasi-Grade I metallurgical coke (wet quenching) is 1,408 yuan/mt.

In terms of supply, the eighth round of coke price cuts has been implemented, further squeezing coke enterprises' profits. Some coke enterprises have been affected in their production, but their inventories remain high, prompting active shipments. In terms of demand, end-use demand recovery has fallen short of market expectations. Steel mills' resumption of production is moderate, and some steel mills' coke inventories remain at reasonable levels, leading to purchasing as needed. In summary, steel prices have declined, transmitting pressure to the raw material side. With no large-scale resumption of production by steel mills, coke demand remains moderate. After the eighth round of price cuts, the coke market is expected to remain stable with a weak trend. 【SMM Steel】