[SMM Daily Coke and Coal Brief] 20250324

[SMM Daily Coal and Coke Briefing]

Coking Coal Market:

Low-sulphur coking coal in Linfen was quoted at 1,300 yuan/mt. Low-sulphur coking coal in Tangshan was quoted at 1,390 yuan/mt.

In terms of fundamentals, coking coal production from mines remained stable. After a continuous decline in coking coal prices, the cost-effectiveness of some coal types became evident, leading to increased purchasing enthusiasm among some coke plants, steel mills, and coal washing plants. They began to make appropriate purchases, and the sales situation of mines improved, with mixed performance in online auctions. In summary, market sentiment has warmed up, and coke prices have not further decreased. This week, coking coal prices may remain stable with a weak trend.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) was 1,625 yuan/mt. The nationwide average price for second-grade metallurgical coke (dry quenching) was 1,485 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) was 1,290 yuan/mt. The nationwide average price for second-grade metallurgical coke (wet quenching) was 1,200 yuan/mt.

In terms of supply, profitability was within an acceptable range, and coke producers maintained moderate production enthusiasm, keeping coke supply stable. On the demand side, recent improvements in steel mill profits led to active resumption of production, increasing daily coke consumption. However, a major steel mill in Xinjiang announced a 10% voluntary production cut, and more steel mills might follow suit, potentially weakening future coke demand. In summary, the short-term supply-demand imbalance for coke is relatively weak, with solid cost support. The coke market may remain stable with a weak trend, but in the long term, more steel mills might announce voluntary production cuts, which would be bearish for coke prices. [SMM Steel]