[SMM Daily Review on Coal and Coke] 20250227

[SMM Daily Review on Coal and Coke]

Coking Coal Market:

The price of low-sulphur coking coal in Linfen is 1,320 yuan/mt. The price of low-sulphur coking coal in Tangshan is 1,390 yuan/mt.

In terms of supply, coking coal supply remains sufficient, and coal mines are still under significant sales pressure. In terms of demand, the tenth round of coke price cuts has been implemented, leading to losses for most coke enterprises. Production cuts have expanded in both intensity and scope, resulting in a low willingness to accept current coking coal prices, with purchasing as needed being the main approach. In summary, market sentiment is cautious, and coking coal prices may remain stable with a slight downward trend.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,680 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,340 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (wet quenching) is 1,250 yuan/mt.

In terms of supply, after the tenth round of coke price cuts, most coke enterprises are operating at a loss, with limited downside room for costs. Profit recovery for coke enterprises remains challenging, leading to reduced operations at some enterprises and a decline in coke supply. In terms of demand, end-use demand is moderate, and steel mill pig iron production is gradually decreasing, resulting in lower daily coke consumption. Additionally, steel mill coke inventories are at reasonable levels, with purchasing as needed being the main approach. In summary, coke enterprise inventories remain high, and the coke market may remain stable with a slight downward trend in the short term. [SMM Steel]