SMM Coking Coal Daily Briefing: April 25, 2025

【SMM Daily Brief on Coal and Coke】

Coking Coal Market:

The low-sulphur coking coal in Linfen was quoted at 1,330 yuan/mt. The low-sulphur coking coal in Tangshan was quoted at 1,370 yuan/mt.

Fundamentally, mines maintained normal production schedules, and supply remained temporarily stable. Downstream procurement mainly revolved around previous orders, and traders adopted a cautious approach to purchasing, leading to a significant reduction in new orders for mines and considerable pressure on shipments. In auctions, transaction prices continued to decline, and failed auctions became increasingly frequent. This series of developments indicates a weak trend in the coking coal spot market. In summary, the coking coal market is expected to gradually weaken in the short term.

Coke Market:

The nationwide average price of first-grade metallurgical coke - dry quenching was 1,680 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke - dry quenching was 1,540 yuan/mt. The nationwide average price of first-grade metallurgical coke - wet quenching was 1,340 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke - wet quenching was 1,250 yuan/mt.

In terms of supply, coke enterprises maintained profitability, showing high production enthusiasm, and product shipments were very smooth, indicating a favorable supply-demand pattern in the coke market. On the demand side, pig iron production at steel mills remained consistently high, with a considerable daily average production, creating a rigid demand for coke. Additionally, some steel mills slightly restocked ahead of the May Day holiday. Although the coke fundamentals remained generally stable, cost support was insufficient. Therefore, the coke market is expected to maintain a stable operating pattern in the short term, with a potential second round of price increases.【SMM Steel】