[SMM Daily Briefing on Coke & Coal] 20250606

[SMM Daily Briefing on Coking Coal]

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 mine production in some regions has slightly decreased. However, market purchasing sentiment remains weak. Downstream coking enterprises are mainly purchasing as needed. Coal mines are facing difficulties in selling their products, and the transaction prices in online auctions continue to decline. As a result, the inventory of some coal mines continues to accumulate. Next week, coking coal prices are more likely to fall than rise.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,495 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,355 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,170 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,080 yuan/mt.

In terms of supply, due to profit contraction and difficulties in selling, the production enthusiasm of some coking enterprises has decreased, leading to a contraction in coke supply. In terms of demand, the finished steel market has been sluggish recently, and steel mill profits have narrowed. Additionally, there has been an increase in blast furnace shutdowns and maintenance at some steel mills, resulting in a continuous decline in pig iron production. Coupled with the high inventory of coke at steel mills, there has been a behavior of controlling arrivals. In summary, the third round of price reductions has been implemented, and the bearish sentiment in the market has been somewhat vented. Next week, the coke market is expected to be in the doldrums. [SMM Steel]