[SMM Daily Coke & Coal Brief Review] 20250605

[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 raw material fundamentals, some coal mines have shown signs of halting or restricting production, leading to a tightening of coking coal supply. Recently, the steel market has been weak, and market sentiment has continued to decline. Trading activities have cooled down. The online auction failure rate of mainstream coal mines in Shanxi remains high. Order signing at coal mines is sluggish, and shipment volumes have fallen short of expectations. In the short term, coking coal prices may continue to face downward pressure.

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, coking enterprises are maintaining a relatively high operating rate. Some coking enterprises have seen inventory accumulation and are actively shipping, but their sentiment is weak. In terms of demand, steel mills are maintaining normal production, and their coke inventories are within a reasonable range. Coupled with the off-season in the market, steel shipments have been average. Some steel mills are controlling the pace of coke arrivals and have a strong desire to bargain down prices. Overall, the fundamentals of the coke market remain relatively loose. Some steel mills have already proposed a third round of price reductions. In the short term, the coke market will be in the doldrums. [SMM Steel]