[SMM Daily Review on Coal and Coke] 20250224

[SMM Daily Review on Coal and Coke]

Coking Coal Market:

The price of low-sulfur primary coking coal in Linfen was 1,360 yuan/mt, while in Tangshan it was 1,390 yuan/mt.

In terms of supply, coal mines maintained normal production, and coking coal supply remained at a high level. On the demand side, end-use demand was still recovering. Additionally, downstream coke and steel enterprises experienced narrower profit margins this week, leading to lower purchase willingness and passive procurement of coking coal. In summary, high supply pressure may result in further downward movement in coking coal prices.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) was 1,735 yuan/mt, while that of Quasi-Grade I metallurgical coke (dry quenching) was 1,595 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,390 yuan/mt, and that of Quasi-Grade I metallurgical coke (wet quenching) was 1,300 yuan/mt.

In terms of supply, coke enterprises maintained high operating rates, resulting in sufficient coke supply. The short-term oversupply situation in the coke market remains difficult to resolve. On the demand side, end-use demand recovered slowly, with even negative feedback logic emerging, leading to weak market confidence. Furthermore, pig iron production declined instead of increasing, reducing steel mills' new demand for coke. In summary, coke supply remained ample, and some steel mills have already initiated the tenth round of price cuts. This week, the coke market fluctuated downward. [SMM Steel]