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

Coking Coal Market:

The price of low-sulfur primary coking coal in Linfen is 1,450 yuan/mt, while in Tangshan it is 1,500 yuan/mt.

In terms of supply, most coal mines have achieved their capacity targets, with some mines halting production. On the demand side, current market sentiment is weakening, with coke producers showing low purchasing enthusiasm and traders having similarly low stocking intentions. Trading volume is limited, and the market trading atmosphere remains weak. In summary, some coal mines are slowing down shipments, inventories are increasing, and certain coal types are still expected to see price reductions. The coking coal market is fluctuating downward.

Coke Market:

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

In terms of supply, the profit per ton of coke continues to narrow, but the cost of coal entering the furnace has decreased. Coke producers still maintain some profitability, and with the relaxation of environmental protection policies, their capacity utilisation rate has increased, leading to a continuous rise in coke production and growing inventory pressure. On the demand side, end-use demand remains in the off-season, with steel mills showing low willingness to restock coke and adopting a cautious procurement approach. Some steel mills are controlling the arrival of goods. In summary, coke producers are maintaining high operating levels, the fundamentals of the coke market remain relatively loose, and the short-term coke market is likely to remain under pressure, with the sixth round of price cuts expected to be implemented soon.