[SMM Daily Review on Coal and Coke] 20250117

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.

Regarding the raw material fundamentals, as the Chinese New Year approaches, private coal mines are gradually halting operations, leading to a tightening of coking coal supply. Downstream end-users are purchasing as needed, and traders are actively selling, causing prices of certain coal types to remain under downward pressure. Online auctions show mixed performance, but the decline has narrowed. Overall, there is still room for further price reductions in coking coal from mines.

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 production remains stable, and coke supply stays at high levels. However, some coke enterprises face sluggish sales, leading to further accumulation of their coke inventory. On the demand side, the futures market continues to rebound, steel prices have risen significantly, and steel mill profits have recovered. However, steel mills' coke inventories remain high, resulting in moderate demand for coke procurement. Overall, the fundamentals of the coke market remain loose, and the short-term coke market is expected to operate stably with a weak trend. 【SMM Steel】