[SMM Daily Briefing on Coke & Coal] 20250603

[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 raw material fundamentals, coal mines are operating normally, and the supply of coking coal in the market remains loose. Coal mines are facing inventory pressure, and spot sales are sluggish. Coal washing plants also have relatively large inventories, with some even temporarily halting operations. Market sentiment is generally pessimistic, and coking coal prices are expected to continue to be under pressure this week.

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, due to the decline in coking coal prices, the profitability of most coke enterprises has improved, and their enthusiasm for coke production remains moderate, with actual supply still leaning towards being loose. On the demand side, affected by the traditional off-season, steel mills are facing increased inventory pressure from finished products, and there is still a desire to bargain down coke prices, with purchasing as needed being the main approach. In summary, the short-term coke market is in the doldrums, with a general bearish sentiment prevailing. The expectation for a third round of coke price reductions still exists. [SMM Steel]