[SMM Daily Review on Coal and Coke] 20250313

Published: Mar 13, 2025 16:57

Save

[SMM Daily Review on Coal and Coke] In terms of supply, the eleventh round of coke price cuts has begun. Profit margins among coke enterprises have diverged, with some experiencing losses. However, most coke enterprises remain marginally profitable due to concessions on raw material costs and have largely maintained previous production levels. On the demand side, blast furnaces in the Tangshan region have gradually resumed operations following environmental protection-driven production restrictions. Although steel mill operations have slightly increased, the Two Sessions policies provided no significant support, making it difficult for steel prices to improve. Moreover, most steel mills still hold high raw material inventories, leading to strong pressure on coke prices. In summary, coke supply remains ample, and the fundamentals are still relatively loose. In the short term, the coke market may fluctuate downward, with the eleventh round of price cuts likely to be implemented this week.

【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】

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Mar 27, 2026 18:45

Ferrous Metals May Continue Trading at Elevated Levels in the Short Term [SMM Steel Industry Chain Weekly Report]

This week, ferrous metals retreated after a rapid rise. At the beginning of the week, the market said that Asia had shifted to coal-fired power generation due to a natural gas supply deficit, while Indonesia would increase coal production and impose export taxes. The rise in international coal prices was transmitted to China, and coking coal and coke led the gains in ferrous metals; mid-week, the Middle East situation remained volatile, and the U.S. and Iran held differing attitudes toward war, with ferrous metals consolidating at high levels; the pullback in the second half of the week was also mainly due to the weakening of the cost-side logic, as market rumors said long-term iron ore contract negotiations had been completed, expectations for tightening iron ore supply declined, and raw materials turned into the main driver of the pullback. In the spot market, speculative trading and end-user purchase sentiment improved in the first half of the week, while rigid demand remained dominant in the second half, and the spot-futures price spread widened somewhat......

Mar 27, 2026 18:45

Mar 27, 2026 18:26

Centralized Production Resumptions Conclude, Limiting Further Supply Increases from EAF Steel Mills

As of March 24, the operating rate of 50 electric-furnace steel mills nationwide mainly producing construction materials was 40.42%, up 1.78% WoW from the previous period; the capacity utilization rate was 41.75%, up 1.88% WoW from the previous period; and daily average production of construction materials was 93,000 mt, up 4,200 mt WoW.

Mar 27, 2026 18:26

Mar 27, 2026 18:11

MMi Daily Iron Ore Report (March 27)

The iron ore futures rose in early trading before gradually retreating during the day. The main contract I2605 ultimately closed at 812 yuan/ton, down 0.49% from the previous trading session.

Mar 27, 2026 18:11