【SMM Daily Briefing on Coke & Coal】May 6, 2025

[SMM Daily Commentary on Coking Coal and Coke]
Coking Coal Market:
In Linfen, low-sulphur coking coal is quoted at 1,310 yuan/mt. In Tangshan, low-sulphur coking coal is quoted at 1,370 yuan/mt.
In terms of fundamentals, most coking and steel enterprises have signed pre-sale orders for the Labour Day holiday. Coal mines are mainly executing previous contracts and have suspended online auctions during the holiday. Online prices of coal mines have also remained unchanged. However, trading volume has decreased after the holiday, and market activity is low. Market participants generally hold a bearish view on the market outlook. In summary, there is some downside room for coking coal prices this week.
Coke Market:
The nationwide average price of premium metallurgical coke (dry quenching) is 1,680 yuan/mt. The nationwide average price of quasi-premium metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price of premium metallurgical coke (wet quenching) is 1,340 yuan/mt. The nationwide average price of quasi-premium metallurgical coke (wet quenching) is 1,250 yuan/mt.
In terms of supply, most coking enterprises maintain normal shipments, and their coke inventories remain at pre-holiday levels, mainly operating at low levels. In terms of demand, steel mills' coke inventories are at reasonable levels, with a significant increase before the holiday. After the holiday, steel mills mainly purchase coke on a need-by-need basis. In addition, the second round of coke price increases has been postponed, and most market participants are adopting a wait-and-see attitude, believing that the subsequent coke market is more likely to fall than rise. In summary, the coke market may operate in the doldrums this week. [SMM Steel]