[SMM coal and coke daily brief review] 20250522

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,230 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,280 yuan/mt.

In terms of fundamentals, coal mine production is normal, but actual coking coal inventory remains high, resulting in sales pressure. Downstream buyers are adopting a wait-and-see attitude, with a high rate of unsold bids in online auctions. The purchasing enthusiasm of coking and steel enterprises is weak, and there is a lack of willingness to restock. Consequently, coking coal prices will continue to face downward pressure.

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, coal mines continue to offer price concessions to restore coking enterprises' profits. Most coking enterprises maintain stable production, but shipments face certain obstacles, leading to a slight accumulation of coke inventory and increased sales pressure. In terms of demand, despite moderate steel mill profits, most steel mills currently have medium-to-high coke inventory levels, resulting in low enthusiasm for coke procurement. Instead, their desire to bargain down coke prices is gradually increasing. In summary, the supply-demand imbalance in the coke market has slightly accumulated, and cost support has weakened. Consequently, coke prices may continue to face downward pressure, with expectations for a second round of price reductions. [SMM Steel]