SMM Coal and Coke Daily Briefing: April 1, 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, mine production maintained a normal pace, with relatively loose supply. Demand side, steel mills gradually resumed production, increasing the rigid demand for raw materials. After a continuous decline in coking coal prices, coke enterprises and steel mills appropriately restocked, leading to a warming trend in online auctions for coking coal, with auction prices rising more than falling, and the market transaction atmosphere improved. In summary, the market sentiment of expecting a price drop significantly decreased, and coking coal prices may 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 were above the break-even line, still maintaining some profits, with moderate production enthusiasm. Coke supply remained stable, and shipment conditions improved, with coke inventory in coke enterprises continuously declining. Demand side, the impact of the peak season was evident, with improved demand for finished products, declining inventory of finished products in steel mills, and increased production enthusiasm due to better profits, leading to a rise in pig iron production. In summary, the rigid demand for coke from downstream increased, with some coke enterprises initiating price increases, and the market sentiment of expecting a price drop significantly decreased. The coke market may remain stable this week. 【SMM Steel】