[SMM Daily Coke & Coal Brief Review] 20250515

[SMM Daily Briefing 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 operating normally, and the supply of coking coal has increased. Some steel mills have reduced the prices of coke, leading to a weak market sentiment in the coking coal and coke market. Spot transactions of coking coal are average, and there are still instances of failed online auctions. Coal mine inventories have accumulated slightly, and coking coal prices may continue to face downward pressure.

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, the reduction in coking coal prices has led to profit recovery, and coking enterprises are maintaining high production enthusiasm, with supply remaining stable at a high level. Additionally, coking enterprises are actively shipping products, and their own coke inventories remain at a low level. In terms of demand, steel mills are in good profitability, with blast furnace operations remaining at a high level, maintaining a rigid demand for coke. However, steel mills generally have high coke inventories, coupled with an increased expectation of raw material price reductions, leading to cautious procurement strategies by steel mills. In summary, market sentiment has turned pessimistic, and it is expected that the coke market may be in the doldrums in the short term. [SMM Steel]