[SMM Daily Review on Coal and Coke] 20250120

【SMM Daily Review on Coal and Coke】

Coking Coal Market:

Low-sulfur primary coking coal in Linfen is quoted at 1,400 yuan/mt. Low-sulfur primary coking coal in Tangshan is quoted at 1,500 yuan/mt.

Regarding the raw material fundamentals, most coal mines have gradually started the Chinese New Year break, leading to a decline in production. Some coal mines with significant inventory pressure have even extended their holiday period. As the Chinese New Year approaches, some coke plants still have moderate restocking demand. Online auctions for coking coal have seen fewer transactions, while the seventh round of coke price cuts has been implemented. Most coke plants are adopting a wait-and-see approach, resulting in a weak supply and demand pattern in the market, with limited support for coking coal prices.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,845 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (dry quenching) is 1,705 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,490 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (wet quenching) is 1,408 yuan/mt.

In terms of supply, after the seventh round of price cuts, most coke plants remain profitable and maintain their original production levels, with moderate sales performance. On the demand side, demand for finished steel remains weak, and market expectations are pessimistic. Steel mills continue to purchase as needed. In summary, coke plant profits have narrowed, while steel mill profits have slightly improved. Combined with the market dynamics ahead of the Chinese New Year, the coke market is expected to remain relatively stable after the implementation of the seventh round of price cuts this week. 【SMM Steel】