[SMM Daily Coke & Coal Brief Review] 20250527

Published: May 27, 2025 17:03

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[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, coking enterprises have moderate profits and stable production, but shipments have faced certain obstacles, leading to a looser coke supply. Demand side, south China has entered the rainy season, with frequent high-temperature and rainy weather, resulting in a seasonal decline in steel demand. Pig iron production has peaked and begun to pull back. Additionally, the coke inventory levels at most steel mills are at a moderately high level, weakening the rigid demand for coke. In summary, steel mills have a strong desire to drive down coke prices. The second round of coke price reductions may be implemented on Wednesday, and the coke market is expected to be in the doldrums this week.

[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 mines are operating normally, with a few mines implementing minor production cuts. However, this is insufficient to alter the overall loose supply situation. Buyers are adopting a wait-and-see attitude. Following the price decline, order signing at coal mines remains unfavorable, leading to an accumulation of coking coal inventory. Additionally, a second round of price reductions for coke is anticipated, further weakening market sentiment. This week, coking coal prices may 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, coking enterprises are maintaining moderate profitability and stable production. However, shipments are facing certain obstacles, leading to a loosening of coke supply. On the demand side, south China has entered the rainy season, with frequent high-temperature and rainy weather. This has resulted in a seasonal decline in steel demand. Pig iron production has peaked and is now pulling back. Additionally, most steel mills' coke inventory levels are at medium to high levels, weakening their rigid demand for coke. In summary, steel mills have a strong desire to drive down coke prices. The second round of coke price reductions is expected to be implemented on Wednesday. This week, the coke market will be in the doldrums. [SMM Steel]

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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