[SMM coal and coke daily brief review] 20250520

[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 with no significant reduction in supply. However, downstream buyers are adopting a wait-and-see attitude, maintaining just-in-time procurement. As a result, coal mines are receiving fewer new orders, and the number of failed online auctions has increased slightly. Market sentiment has deteriorated, and the coking coal market is expected to be in the doldrums in the short term.
Coke Market:
The nationwide average price for premium metallurgical coke (dry quenching) is 1,625 yuan/mt. The nationwide average price for quasi-premium metallurgical coke (dry quenching) is 1,485 yuan/mt. The nationwide average price for premium metallurgical coke (wet quenching) is 1,290 yuan/mt. The nationwide average price for quasi-premium metallurgical coke (wet quenching) is 1,200 yuan/mt.
In terms of supply, most coking enterprises are still maintaining certain profits and operating steadily. However, downstream buyers are increasingly adopting a wait-and-see attitude, hindering the shipment of coke for some enterprises, leading to a slight accumulation of coke inventory. On the demand side, pig iron production at steel mills has peaked and is pulling back. There is a general expectation of weaker demand for finished steel products in the future. Additionally, most steel mills currently have medium to high levels of coke inventory and are cautious about purchasing raw materials, with an increased desire to bargain down prices. Furthermore, today's deposit and loan interest rates have both been lowered, but this has failed to offset the market's bearish sentiment, with coking coal and coke futures prices generally declining. In summary, the supply-demand imbalance in the coke market continues to accumulate, and cost support is weakening. There is an expectation of a second round of price reductions in the short-term coke market. [SMM Steel]