[SMM Coal and Coke Daily Review] Some Steel Mills Have Already Proposed the Sixth Round of Price Cuts

On January 6, SMM Coal and Coke News,

Coking Coal Market:

Low-sulfur primary coking coal in Linfen was quoted at 1,450 yuan/mt, while in Tangshan it was quoted at 1,500 yuan/mt.

Regarding fundamentals, the completion of annual tasks at coal mines and the impact of individual mine accidents led to production halts at some mines in Shanxi, reducing supply. However, coking coal inventory at mines remained at high levels, keeping supply relatively ample. Additionally, some coke plants in Shandong halted production due to capacity quota issues, weakening demand support. In summary, the coking coal market may fluctuate downward, with room for further price reductions for certain coal types.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) was 1,955 yuan/mt, while quasi-Grade I metallurgical coke (dry quenching) averaged 1,815 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,590 yuan/mt, and quasi-Grade I metallurgical coke (wet quenching) averaged 1,508 yuan/mt.

In terms of supply, coke production remained temporarily stable, and shipment levels did not show significant declines, with only some coke plants reducing production due to environmental protection factors. On the demand side, falling finished steel prices, combined with weaker production enthusiasm at steel mills near year-end, created negative feedback to the raw material side. Steel mills gradually sought profit margins from coke plants and coal mines. In summary, with moderate demand and weakened cost support, coke prices still face downward risks, and some steel mills have even proposed a sixth round of price cuts.