[SMM Daily Coke & Coal Brief Review] 20250519

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,250 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,330 yuan/mt.

In terms of fundamentals, coal mines are operating normally overall, with no significant decline in supply. However, downstream buyers remain cautious, maintaining just-in-time procurement. Coal mines are mainly executing previous orders, with fewer new orders. Online auction transaction prices continue to decline. In the short term, the coking coal market will operate in the doldrums.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,625 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,485 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,290 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,200 yuan/mt.

In terms of supply, most coking enterprises remain near the break-even point, with stable production. However, some coking enterprises face certain obstacles in shipping their products, leading to an increase in coke inventory pressure. On the demand side, the peak demand season for steel is gradually fading, with pig iron production at steel mills peaking and then pulling back. Currently, most steel mills have medium to high levels of coke inventory and are cautious about purchasing raw materials, maintaining purchasing as needed. In summary, the supply-demand imbalance in the coke market has slightly accumulated, and cost support has weakened. In the short term, the coke market will operate in the doldrums, with expectations for a second round of price reductions. [SMM Steel]