SMM Coal and Coke Daily Briefing: March 25, 2025

SMM Daily Brief on Coal and Coke

Coking Coal Market:

The price of low-sulphur coking coal in Linfen was quoted at 1,300 yuan/mt. The price of low-sulphur coking coal in Tangshan was quoted at 1,390 yuan/mt.

Fundamentally, coking coal production at mines remained stable. After a continuous decline in coking coal prices, the cost-effectiveness of some coal types became apparent. Additionally, coking coal inventories at some coke enterprises and steel mills decreased, leading to appropriate procurement. Mine shipments improved, and slight premiums appeared in online auctions. In summary, market sentiment improved, and the expectation of coke price reductions temporarily subsided. Coking coal prices are expected to remain stable with a weak trend this week.

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.

Supply side, coke production remained relatively stable, with profit and loss within acceptable limits. Shipments improved, and coke inventories continued to decline. Demand side, recent resumption of production at steel mills led to a continuous increase in pig iron production, creating rigid demand for coke. However, market rumors suggest more steel mills may announce voluntary production cuts, leading to an expected weakening in coke demand. In summary, rigid demand for coke increased, and the short-term supply-demand imbalance for coke is weak. The coke market is expected to remain stable with a weak trend this week, but in the long term, there is still an expectation of price reductions for coke.【SMM Steel】