SMM Coking Coal Daily Brief Review: March 28, 2025

【SMM Coal and Coke Daily Brief】

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 1,340 yuan/mt.

In terms of supply, mines maintained normal production, and coking coal supply remained stable. Meanwhile, the recent online auctions for coking coal warmed up, with auction prices rising more than falling, improving market sentiment and reducing sales resistance. On the demand side, steel mills saw improved sales, gradually resumed production, and reduced the sentiment to suppress raw material prices, increasing purchase enthusiasm and temporarily suspending coke price cuts. Overall, coking coal prices may remain stable next week, with some coal types potentially rebounding slightly.

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, most coke enterprises maintained high production enthusiasm based on profitability considerations, with stable coke supply and improved shipments, leading to a decline in coke enterprise inventory to a medium level. On the demand side, steel mills actively shipped products recently, continuously reducing finished product inventory, and traders also showed strong shipment enthusiasm. Under these combined effects, total inventory continued to decline. Additionally, with favorable profits, steel mills resumed production, increasing the rigid demand for coke. Overall, the rigid demand for coke from downstream increased, and the supply-demand imbalance for coke weakened. The coke market may remain stable next week. 【SMM Steel】