SMM Coal and Coke Daily Briefing: March 26, 2025

Published: Mar 26, 2025 17:09

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【SMM Coking Coal Daily Brief】 Supply side, most coking enterprises still maintained profits. Based on profit strategies, coke supply remained relatively stable, with no expectations for production cuts reflected. Shipment conditions improved, and coking enterprise inventories continued to decline. Demand side, finished product inventories at steel mills continuously decreased recently, and profits were favorable. Pig iron production kept increasing, creating a rigid procurement demand for coke. In summary, the rigid demand for coke increased, and the supply-demand imbalance for coke was weak in the short term. The coke market is expected to operate steadily this week.

【SMM Daily Brief on Coal and Coke】

Coking Coal Market:

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

Fundamentally, coking coal production at mines remained stable. After a continuous decline in coking coal prices, the cost-effectiveness of some coal types became apparent. Additionally, steel mills' sales improved, leading to gradual resumption of production, which reduced the sentiment to suppress raw material prices. Online auctions saw more increases than decreases, and the market trading atmosphere improved. In summary, market sentiment warmed up, and coking coal prices are expected to remain stable this week.

Coke Market:

The nationwide average price of first-grade metallurgical coke - dry quenching was 1,625 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke - dry quenching was 1,485 yuan/mt. The nationwide average price of first-grade metallurgical coke - wet quenching was 1,290 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke - wet quenching was 1,200 yuan/mt.

Supply side, most coke enterprises still had profits. Based on profit strategies, coke supply remained relatively stable, with no expectations for production cuts. Shipments improved, and coke enterprise inventories continued to decline. Demand side, recent steel mill finished product inventories kept declining, and profits were good. Pig iron production continued to increase, creating rigid procurement demand for coke. In summary, the rigid demand for coke increased, and the short-term supply-demand imbalance for coke was weak. The coke market is expected to remain stable 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.

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