[SMM Daily Coke & Coal Brief Comment] 20250514

[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 are maintaining a normal production pace, but actual transaction performance is average, with a risk of inventory buildup. Some coal mines have poor subsequent orders, and prices have already started to pull back. Online auctions have seen more declines than increases, and coking coal prices will continue to face downward pressure in the future.

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 have moderate production profits and high enthusiasm for operation, keeping coke supply at a high level. However, the shipping pace of some coking enterprises has slowed down, resulting in certain inventory pressure. In terms of demand, steel mills' coke inventory is at a medium-to-high level, with weak restocking demand. Additionally, with the arrival of the off-season, the number of blast furnace maintenance operations is gradually increasing. Some steel mills have slowed down their purchasing pace, mainly purchasing as needed. In summary, the market is beginning to transition into the off-season, with pig iron production basically peaking. Coupled with the relatively high level of coke inventory at steel mills, the coke market may be in the doldrums in the short term, and there is an expectation for the first round of price reductions to be implemented. [SMM Steel]