【SMM Daily Briefing on Coke & Coal】April 27, 2025

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,330 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,370 yuan/mt.

In terms of fundamentals, most coal mines are maintaining a stable production pace, and the supply of coking coal is showing a loose trend. Traders are purchasing as needed and adopting a wait-and-see attitude towards the market outlook. Even at lower prices, transaction volumes remain average, with downstream coking and steel enterprises also primarily adopting a wait-and-see approach. In summary, the coking coal market is expected to weaken in the short term.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,680 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,340 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,250 yuan/mt.

In terms of supply, coking enterprises are enjoying moderate profits, maintaining a good level of operation, and experiencing favourable shipment conditions. Coke inventory levels remain low. In terms of demand, steel mills' blast furnace pig iron production remains high, creating a rigid demand for coke. Additionally, some steel mills have a certain stockpiling demand ahead of the Labour Day holiday, resulting in moderate enthusiasm for coke procurement. In summary, the fundamental imbalance in the coke market is relatively small. However, the market has once again heard about policies to reduce crude steel production, and downstream enterprises are showing strong wait-and-see sentiment. In the short term, coke prices are expected to remain stable for the time being. [SMM Steel]