[SMM Coal and Coke Daily Review] The Fifth Round of Coke Price Cuts Is About to Be Implemented

On December 26, SMM Coking Coal and Coke News,
Coking Coal Market:
The price of low-sulfur primary coking coal in Linfen was 1,500 yuan/mt. The price of low-sulfur primary coking coal in Tangshan was 1,605 yuan/mt.
In terms of supply, coal mines reduced production to ensure safety; prices of most coal types have fallen below recent years' lows. The price of low-sulfur primary coking coal in Linfen dropped by 40-80 yuan/mt, and further price reductions are expected for other coal types. On the demand side, pig iron production is expected to decline, end-use demand remains weak, and the loose supply of raw materials persists, leading to pessimistic market sentiment. In summary, coal mines are focusing on production safety, reducing production enthusiasm, and primarily engaging in destocking. After continuous declines in coking coal prices, the downside room is limited.
Coke Market:
The nationwide average price of Grade I metallurgical coke (dry quenching) was 2,010 yuan/mt. The nationwide average price of quasi-Grade I metallurgical coke (dry quenching) was 1,870 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,640 yuan/mt. The nationwide average price of quasi-Grade I metallurgical coke (wet quenching) was 1,558 yuan/mt.
On the supply side, raw material costs continued to decline, leaving coke enterprises with relatively small profit pressure. Production remained stable overall, and sales performance was moderate, with only a few coke enterprises slightly cutting production due to environmental protection factors. On the demand side, steel mills showed moderate production enthusiasm, and pig iron production is expected to decline. In summary, the fifth round of coke price cuts has begun, with mainstream steel mills initiating a new round of price reductions for coke, with a reduction range of 50-55 yuan/mt, expected to be fully implemented by Friday. The market transaction atmosphere is sluggish, and downstream coke and steel enterprises are adopting a wait-and-see attitude. In the short term, the coke market may fluctuate downward.