[SMM Daily Coke and Coal Brief] 20250320

[SMM Daily Coking Coal and Coke Briefing]

Coking Coal Market:

Low-sulphur coking coal in Linfen was quoted at 1,300 yuan/mt. Low-sulphur coking coal in Tangshan was quoted at 1,390 yuan/mt.

In terms of fundamentals, coking coal production from mines remained stable. Due to ample supply from upstream mines and weak procurement demand from downstream coke and steel enterprises, washing plants showed low production enthusiasm. Additionally, downstream coke and steel enterprises continued to manage their own coking coal inventories. After some coal types became more cost-effective following price reductions, they began to make moderate purchases, leading to improved sales for mines with mixed performance in online auctions. In summary, the improvement in mine sales alleviated market pessimism, and coking coal prices may stabilize in the short term.

Coke Market:

The nationwide average price of first-grade metallurgical coke (dry quenching) was 1,625 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 1,485 yuan/mt. The nationwide average price of first-grade metallurgical coke (wet quenching) was 1,290 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (wet quenching) was 1,200 yuan/mt.

In terms of supply, after the eleventh round of coke price cuts, coke enterprise profits declined, and some coke enterprises fell into losses. As a result, these enterprises reduced production, slightly narrowing coke supply. On the demand side, recent improvements in steel mill profits led to increased pig iron production and higher daily coke consumption. Some steel mills started restocking coke, reducing controlled arrivals. In summary, coke inventories at coke enterprises decreased, and the fundamental situation of coke improved. With limited downside room due to cost support, the coke market may stabilize this week. [SMM Steel]