【SMM Daily Briefing on Coke & Coal】20250509

[SMM Daily Commentary on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,300 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,370 yuan/mt.

In terms of fundamentals, coal mine production is normal, and supply is loose. Quoted prices from coal mines have seen a slight correction. Nearly half of the online auction bids have failed, with transaction prices mainly declining. In summary, the price of coking coal has pulled back, and market sentiment has turned bearish. Next week, the coking coal market may remain in the doldrums.

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, coking enterprises are maintaining slight profitability, with overall production enthusiasm being moderate. Operating rates remain high, but shipments from some coking enterprises have slowed down somewhat, increasing shipment pressure. On the demand side, steel mills' rigid demand for coke persists. Additionally, steel mills' coke inventories are within a reasonable range, and some steel mills have begun to control coke arrivals. Overall, the imbalance in the coke market fundamentals is relatively small. However, market expectations for finished steel are relatively pessimistic, and the cost support for coke has weakened recently. Market sentiment has turned bearish. Next week, the coke market may remain in the doldrums, with expectations of price reductions.