【SMM Daily Briefing on Coke & Coal】20250508

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,300 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,370 yuan/mt.

In terms of fundamentals, coal mines are operating normally, and supply is relatively abundant. The purchasing pace of downstream buyers has slowed down, with reduced activity. Some coal mines have seen a slowdown in shipments, leading to an accumulation of inventory. Prices for certain coal types in the Linfen region have already started to drop back slightly. In summary, market participants have a strong wait-and-see sentiment towards the subsequent coking coal market, and coking coal prices may remain in the doldrums in the short term.

Coke Market:

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

In terms of supply, most coking enterprises are maintaining profits and have good enthusiasm for production, with coke production remaining at highs. Moreover, coke shipments are moderate, and inventory levels remain low. In terms of demand, steel mills' profitability is moderate, and blast furnace pig iron production is fluctuating at highs, indicating good demand for coke. However, steel mills' coke inventory levels are at medium to high levels, with purchasing mainly done as needed. Overall, the imbalance in coke fundamentals is relatively small. However, market expectations for finished steel products are relatively pessimistic, and the cost support for coke has weakened recently, with insufficient momentum for price increases. In the short term, the coke market may remain stable for the time being. [SMM Steel]