[SMM Daily Review on Coal and Coke] 20250221

[SMM Daily Review on Coal and Coke]

Coking Coal Market:

Linfen low-sulfur primary coking coal is quoted at 1,360 yuan/mt. Tangshan low-sulfur primary coking coal is quoted at 1,450 yuan/mt.

In terms of supply, coal mines are operating normally, coking coal supply remains at a high level, and coking coal inventory is also at a high level, leading to a relatively loose supply of coking coal. Demand side, downstream coke and steel enterprises are experiencing average profits, and with coke prices still expected to decline, the purchase willingness of coke plants and steel mills is suppressed, resulting in passive procurement of coking coal. In summary, coking coal prices are expected to remain under pressure next week.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,735 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (dry quenching) is 1,595 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,390 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (wet quenching) is 1,300 yuan/mt.

In terms of supply, coke plant operations have slightly declined but remain at a high level, ensuring sufficient coke supply. Additionally, some coke plants have accumulated inventory, leading to a loose supply of coke. Demand side, end-use demand is gradually recovering but falls short of expectations. Pig iron production has decreased instead of increasing, reducing coke consumption. Furthermore, steel mills are primarily purchasing coke as needed to further suppress coke prices. In summary, the short-term oversupply in the coke market is unlikely to improve, and the market is expected to remain stable with a weak trend, with a potential tenth round of price cuts next week. [SMM Steel]