[SMM Daily Coke & Coal Brief Review] 20250513

[SMM Daily Commentary on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,270 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,370 yuan/mt.

In terms of fundamentals, coal mines have maintained stable operations, continuing the situation of loose supply. However, the pressure on coal mines to sell has increased, leading to some downward adjustments in quoted prices. Additionally, there have been many instances of failed auctions recently, gradually increasing market wait-and-see sentiment. In the short term, there is still an expectation of price reductions for some high-inventory coal types.

Coke Market:

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

In terms of supply, coking enterprises have maintained high operating rates, with some experiencing a slowdown in shipments. However, overall inventory levels remain low, resulting in relatively small sales pressure. In terms of demand, steel mills are operating at high levels and have procurement needs for coke. However, steel mills' coke inventories are generally at medium to high levels, resulting in low willingness to restock. In summary, the imbalance in coke fundamentals has increased slightly. Moreover, the steel market is about to enter the traditional consumption off-season, gradually strengthening the desire to drive down prices for raw materials. In the short term, the coke market may trend weaker. [SMM Steel]