[SMM Daily Coke & Coal Brief Review] 20250523

Published: May 23, 2025 17:09

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[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, coal mines continue to offer concessions to restore the profitability of coking enterprises. Most coking enterprises are operating steadily, but their shipments are somewhat hindered, leading to a slight accumulation of their own coke inventory. Overall, the supply of coke remains relatively loose. On the demand side, the coke inventory of most steel mills is currently at a medium-to-high level. Moreover, pig iron production has jumped initially and then pulled back, resulting in a decrease in the immediate demand of steel mills. Consequently, their enthusiasm for coke procurement has diminished, and their desire to bargain down coke prices has increased. In summary, the supply-demand imbalance of coke continues to accumulate, and cost support has weakened. It is expected that there will be a second round of price reductions for coke next week.

[SMM Daily Commentary 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, mainstream coal mines in Changzhi, Shanxi, and Anhui are undergoing maintenance, while production at other coal mines remains normal. Coking coal production has slightly decreased. However, downstream buyers are adopting a wait-and-see attitude, with a high rate of unsold lots in online auctions. Purchasing enthusiasm among coking and steel enterprises is weak, and there is a lack of willingness to restock. As a result, coal mines have received fewer new orders, and actual coking coal inventory remains high, posing sales pressure. Next week, coking coal prices are expected to 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 are operating steadily, but shipments have faced certain obstacles, leading to a slight accumulation of coke inventory. Overall coke supply is leaning towards a loose situation. In terms of demand, the coke inventory at most steel mills is currently at a medium to high level. Additionally, pig iron production has jumped initially and then pulled back, reducing the rigid demand from steel mills and lowering their enthusiasm for coke purchases. Consequently, their desire to drive down coke prices has increased. In summary, the supply-demand imbalance in the coke market continues to accumulate, and cost support has weakened. Next week, a second round of price reductions for coke is expected. [SMM Steel]

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