[SMM Daily Coke & Coal Brief Review] 20250529

[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, coal mines are maintaining a normal production pace, and the supply situation remains loose. Downstream buyers are still adopting a wait-and-see attitude, with poor online auction results. Coal mines have lowered their starting auction prices, but the signing situation remains poor. In summary, coking coal prices may continue to face downward pressure 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, the profit and loss situation of most coking enterprises remains within an acceptable range, with production temporarily stable and coke supply fluctuating at highs. In terms of demand, there has been a seasonal decrease in steel demand, with pig iron production continuing to decline. Additionally, south China has entered the rainy season, and high-temperature and rainy weather have affected project commencements, further dampening the enthusiasm of steel mills for purchases. In summary, market sentiment remains bearish, and the coke market is expected to be in the doldrums in the short term, with a third round of price cuts expected for coke next week. [SMM Steel]