[SMM Daily Review on Coal and Coke] 20250225

Published: Feb 25, 2025 16:50

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[SMM Daily Review on Coal and Coke] In terms of supply, coke enterprises maintained a high operating rate, but faced significant sales pressure, with some experiencing noticeable inventory buildup. The short-term oversupply of coke remains difficult to resolve. On the demand side, end-use demand recovered slowly, pig iron output at steel mills declined instead of increasing, and market confidence further weakened due to the tariff hike imposed by foreign countries. Steel mills primarily purchased coke as needed. In summary, coke supply remains ample, and the tenth round of price cuts is expected to be implemented this week, with the coke market continuing to fluctuate downward.

Coking Coal Market:
The price of low-sulfur primary coking coal in Linfen is 1,360 yuan/mt, while in Tangshan it is 1,390 yuan/mt.
In terms of supply, coal mines are operating in an orderly manner, and coking coal supply remains at a high level. On the demand side, the tenth round of coke price cuts is expected to materialize, and coke producers' profits may continue to shrink, leading to a low willingness to accept current coking coal prices and passive purchasing of coking coal. In summary, steel mills continue to push for coke price cuts, creating negative feedback in the market. Coking coal prices lack support and may continue to follow the downward trend of coke prices.

Coke Market:
The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,735 yuan/mt, while that of Quasi-Grade I metallurgical coke (dry quenching) is 1,595 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,390 yuan/mt, and that of Quasi-Grade I metallurgical coke (wet quenching) is 1,300 yuan/mt.
In terms of supply, coke producers are maintaining high operating rates, but sales pressure is significant, with some producers experiencing noticeable inventory buildup. In the short term, the oversupply situation in the coke market is unlikely to improve. On the demand side, end-use demand is recovering slowly, pig iron production at steel mills is declining rather than increasing, and the imposition of additional tariffs by foreign countries has further dampened market confidence. Steel mills are primarily purchasing coke as needed. In summary, coke supply remains abundant, and the tenth round of price cuts is expected to be implemented this week. The coke market continues to fluctuate downward.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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