[SMM Daily Review on Coal and Coke] 20250313

【SMM Daily Review on Coal and Coke】

Coking Coal Market:

The price of low-sulphur coking coal in Linfen is 1,300 yuan/mt, while in Tangshan it is 1,390 yuan/mt.

In terms of fundamentals, most coal mines are maintaining normal operations, and the overall supply of coking coal remains ample. However, on the demand side, finished steel consumption is weak, and downstream buyers show low enthusiasm for raw coal procurement. Order signing at coal mines remains below expectations, with noticeable inventory accumulation in some cases. In summary, coking coal supply remains relatively loose, coupled with continued weakening of coke prices, leading to a pessimistic market sentiment. In the short term, coking coal prices are expected to have further downside room.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,680 yuan/mt, while that of Quasi-Grade I metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,340 yuan/mt, and that of Quasi-Grade I metallurgical coke (wet quenching) is 1,250 yuan/mt.

In terms of supply, the eleventh round of coke price cuts has begun. Profit margins among coke producers are diverging, with some experiencing losses. However, most coke producers are maintaining slight profitability due to cost reductions in raw materials and are continuing previous production levels. On the demand side, blast furnaces in Tangshan are gradually resuming operations following environmental protection-driven production restrictions. Although steel mill operations have slightly increased, the Two Sessions policies provide no significant support, and steel prices show little improvement. Additionally, most steel mills still hold high raw material inventories, maintaining strong pressure on coke prices. In summary, coke supply remains sufficient, and the fundamentals are still relatively loose. In the short term, the coke market may fluctuate downward, with the eleventh round of coke price cuts likely to be implemented this week. 【SMM Steel】