[SMM Daily Review on Coal and Coke] 20250110

SMM Daily Review on Coal and Coke

Coking Coal Market:

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

In terms of raw material fundamentals, year-end safety inspections are stringent, and some coal mines are expected to begin holiday shutdowns in mid-month. Coking coal supply is expected to decrease before the Chinese New Year. However, current coal mine inventory remains at a high level, with online auction prices mostly declining rather than rising, and downstream restocking willingness is low. In summary, coking coal prices may remain stable with a weak trend in the short term.

Coke Market:

The nationwide average price of Grade I Metallurgical Coke (dry quenching) is 1,900 yuan/mt. The nationwide average price of Quasi-Grade I Metallurgical Coke (dry quenching) is 1,760 yuan/mt. The nationwide average price of Grade I Metallurgical Coke (wet quenching) is 1,540 yuan/mt. The nationwide average price of Quasi-Grade I Metallurgical Coke (wet quenching) is 1,458 yuan/mt.

In terms of supply, coke enterprises' production remains stable, with average sales performance. Only a few coke enterprises have implemented production cuts due to environmental protection factors. On the demand side, as the year-end approaches, steel mills are gradually releasing winter stockpiling policies. However, expectations remain sluggish, and the negative feedback trend persists. Steel mills are strongly motivated to seek profits from raw materials. In summary, raw material prices still have room for further decline, and finished steel prices have seen a significant downward adjustment. Before the Chinese New Year, there may be a round of price negotiation for coke reductions. 【SMM Steel】