[SMM coal and coke daily briefing] 20250528

[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, most coal mines are maintaining normal production rhythms, and the supply situation remains loose. However, downstream buyers are adopting a wait-and-see attitude, and online auction transactions are poor. Even with price reductions, order signing remains unoptimistic, leading to an accumulation of coking coal inventory at coal mines. In summary, with the second round of coke price reductions implemented, coking coal prices are expected to remain in the doldrums in the short term.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,570 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,430 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,240 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,150 yuan/mt.

In terms of supply, after the second round of coke price reductions, most coking enterprises are experiencing losses, but these are still within an acceptable range. Production remains temporarily stable, and the coke supply is relatively loose. In terms of demand, there has been a seasonal decrease in steel demand. Pig iron production has peaked and is pulling back. The policy to reduce crude steel output has not yet been implemented, making it difficult to offset the impact of weak market realities. Additionally, most steel mills' coke inventory levels are at medium to high levels, weakening the rigid demand for coke. In summary, after the second round of coke price reductions, the market still exhibits bearish sentiment, and the coke market is expected to remain in the doldrums in the short term. [SMM Steel]