[SMM Daily Review on Coal and Coke] 20250304

[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.

Regarding the fundamentals of raw materials, during the Two Sessions, coal mines are focusing on safe production and operating cautiously. Downstream coke enterprises are at the breakeven point or incurring losses. Coupled with the moderate demand for finished steel products from steel mills, coke is mainly purchased as needed. Some coal mines with significant inventory pressure are still selling at reduced prices. In summary, the coking coal market may operate stable with a weak trend in the short term.

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, some coke enterprises have slightly cut production due to losses, but most maintain stable production, and the decline in coke inventory is slow. On the demand side, pig iron production at steel mills has turned to an increase, leading to higher daily coke consumption. Additionally, some steel mills have restocking needs, boosting their purchasing enthusiasm for coke. In summary, coke supply tightens, demand increases, and the fundamentals are improving. Coupled with the Two Sessions, the coke market may operate stable with a weak trend in the short term. [SMM Steel]