SMM Coal and Coke Daily Briefing: March 26, 2025

【SMM Daily Brief on Coal and Coke】

Coking Coal Market:

The low-sulphur coking coal in Linfen was quoted at 1,300 yuan/mt. The 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, steel mills' sales improved, leading to gradual resumption of production, which reduced the sentiment to suppress raw material prices. Online auctions saw more increases than decreases, and the market trading atmosphere improved. In summary, market sentiment warmed up, and coking coal prices are expected to remain stable 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, most coke enterprises still had profits. Based on profit strategies, coke supply remained relatively stable, with no expectations for production cuts. Shipments improved, and coke enterprise inventories continued to decline. Demand side, recent steel mill finished product inventories kept declining, and profits were good. Pig iron production continued to increase, creating rigid procurement demand for coke. In summary, the rigid demand for coke increased, and the short-term supply-demand imbalance for coke was weak. The coke market is expected to remain stable this week. 【SMM Steel】