【SMM Daily Briefing on Coke & Coal】April 29, 2025

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,310 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,370 yuan/mt.

In terms of fundamentals, coal mines are maintaining normal production. The inventory of coking coal, a raw material for downstream industries, is at a safe level. The willingness to restock before the holiday is generally low. Coupled with a significant cooling of market sentiment, online auctions show mixed performance with a relatively high rate of unsold lots. The market is cautious and in a wait-and-see mood. In summary, there is an expectation of a short-term price correction for coking coal.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,680 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,340 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,250 yuan/mt.

In terms of supply, the cost for coking enterprises has decreased. Increased profits have driven up the production enthusiasm of coking enterprises, leading to a steady increase in coke production and smooth shipments. The inventory levels of coking enterprises are generally low. In terms of demand, pig iron production continues to remain high. Steel mills have a rigid demand for coke. With the approaching Labour Day holiday, some steel mills are restocking slightly. In summary, the fundamentals of coke are good. However, macro expectations are average, and market sentiment is cautious. The coke market is expected to remain stable in the short term. [SMM Steel]